Question

(iv) The amount of money in the account every year, when Rs 10000 is deposited at compound interest at 8% per annum.

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Answer 1

Answer:

Given Amount =Rs 10,000

interest =8%

Total amount =P(1+r)

n

P is principle amount

r is the rate of interest

n is no of year

Compound interest increases depend on principle

Next year interest is interest on before year total

=10000(1+0.08)

n

At the end of the first year, =1000(1.08)=10800/−

Every year the amount increases at 1.08 times

Answer 2

(iv) The amount of money in the account every year, when Rs 10000 is deposited at compound interest at 8% per annum.

(iv) The amount of money in the account every year, when Rs 10000 is deposited at compound interest at 8% per annum.Solution:

We know that if Rs. P is deposited at r% compound interest per annum for n years, the amount of money will be:

P(1+r/100)n

Therefore, after each year, the amount of money will be;

10000(1+8/100), 10000(1+8/100)2, 10000(1+8/100)3……

Clearly, the terms of this series do not have the common difference between them. Therefore, this is not an A.P.