Question

Suppose a bank account gives you 5% interest rate annually. You invest Rs. 1000 and add Rs. 100 every year. How much money do you have after 7 years ?​

Answer 1

Question:

Suppose a bank account gives you 5% interest rate annually. You invest Rs. 1000 and add Rs. 100 every year. How much money do you have after 7 years ?​

To find:

How much money do you have after 7 years ?​

Given:

• bank account gives you 5% interest rate annually

• You invest Rs. 1000 and add Rs. 100 every year

Simple interest=$\frac{Principle * Time * Rate of interest per annum}{100}$

Amount=Simple interest + Principle

Thus,

Here the principle=1000rs

The rate of interest per annum=5%

Solution:

In 7 years we will add=(100 * 7)rs

                                     =700rs

So,

     Simple interest in 7 years if the principle is 1000rs=($\frac{1000 * 7 * 5}{100}$)rs

                                                                                         =(10 * 35)rs

                                                                                         =350rs

So,

      The total amount in 7 years=(700 + 1000 +350)rs

                                                      =2050rs

Answer:

The number of money i have after 7 years=2050rs