Question

Mitesh invests ₹ 700 for 5 years at the rate of 10%. How much amount would he get at the end of the term?

Answer 1

The compound interest accumulation factor is :

P(1 + i)ⁿ

P = 700

i = 10%

n = 5

Doing substitution :

700 × (1.10)⁵ = 1127.36

Answer 2

Solution :

Mitesh investment (P) = Rs700

Time ( T ) = 5 years

Rate of interest ( R ) = 10%

Let the amount = A

We know the formula ,

A = P( 1 + TR/100 )

= 700[ 1 + ( 5 × 10 )/100 ]

= 700[ 1 + 1/2 ]

= 700[ ( 2 + 1 )/2]

= 700 × ( 3/2)

= 2100/2

= 1050

Therefore ,

Amount ( A ) = Rs 1050

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