Question

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​

Answer 1

Answer:

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.