Question

the amount of money in the account every year when rupees 100 are deposited annually to accumulate at compound interest at 4% per annum...is this sequence formed will form an AP or not

Answer 1

Hey mate (^_^) /

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Answer:
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If P is the principal and R% per annum is the rate of interest compounded annually then, the amount (A) at the end of n years.

A = P (1 + R/100)ⁿ

Given: P = ₹ 100, R= 4

A= 100(1+4/100)ⁿ
A= 100 (1 + 1/25)ⁿ
A = 100 (26/25)ⁿ
A= 100 × (1.04)ⁿ

The amount of money in the account at the end of different years is given by:

₹ 100 × (1.04)ⁿ , 100 × (1.04)² , 100 × (1.04)³,.....
Or ₹ 104 , ₹ 108.16 , ₹ 112.48,.....

Clearly it is not forming an A.P.

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