Question

Wat will be rupees 500 amounts to in 10 years after it deposit in a bank which pays annual interest rate of 10% compounded annually

Answer 1

Given

Compounded amount (inclusive of Interest) = A= ? (RTF)

Duration/Time = n = 10 years

Rate of Interest Per annum= i = 10%

P = Principal Amount = 500

we know That..

For compound Interest...

A=P(1+i)^n

substituting above information..

= 500(1+10/100)^10

= 500(1+0.1)^10

= 500(1.1)^10

= 500(2.5937)

= 1297(Approx..)

so the compounded amount= 1297