Question 31 What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?
Class X1 - Maths -Sequences and Series Page 193
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Let A is the amount ,
P is the principal,
r is the rate of interest ,
and t is the time period in year.
now,
![A=P(1+\frac{r}{100})^t\\\\=500[1+\frac{10}{100}]^{10}\\\\=500[1+0.1]^{10}\\\\=500(1.1)^{10}](https://tex.z-dn.net/?f=A%3DP%281%2B%5Cfrac%7Br%7D%7B100%7D%29%5Et%5C%5C%5C%5C%3D500%5B1%2B%5Cfrac%7B10%7D%7B100%7D%5D%5E%7B10%7D%5C%5C%5C%5C%3D500%5B1%2B0.1%5D%5E%7B10%7D%5C%5C%5C%5C%3D500%281.1%29%5E%7B10%7D "A=P(1+\frac{r}{100})^t\\\\=500[1+\frac{10}{100}]^{10}\\\\=500[1+0.1]^{10}\\\\=500(1.1)^{10}")
P is the principal,
r is the rate of interest ,
and t is the time period in year.
now,
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