If Nitin deposit in the bank in one year becomes 1100 from 1000 find out his deposit after 5 years If his money increase at the same rate and in each year the principal amount is considered to be 1000
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Step-by-step explanation:
It is given that in each year, the principal amount is considered to be same. This means that this is a case of simple interest.
It is given that in one year, Rs.1000 becomes Rs.1100.
=> 1000 grows to 1100 in one year
=> 1000 grows by 10 per cent in one year
=> Rate of interest is 10 per cent per year
P = initial amount in Rs. = 1000
R = rate of interest per cent per year = 10
T = time period in years = 5
SI = simple interest earned during period T
A = final amount at the end of period T
SI = P*R*T/100
= (1000*10*5)/100
= 500
A = P + SI
= 1000 + 500
= 1500
Nitin's initial deposit of Rs.1000 will become Rs.1500 at the end of 5 years.
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