What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?

Answer

N/a

Explanation

Principle P=Rs. 500, Rate R=10%
Amount after 1 year `=p+(PxxRxx1)/(100)`
`=500(1+(10)/(100))=50xx(11)/(10)`
Amount after two years `=(500xx(11)/(10))`
`+(500xx(11)/(10))xx(10xx1)/(100)`
`=500xx((11)/(10))^(2)`
Amount after three years `=500xx((11)/(10))^(2)+50xx((11)/(10))^(2)xx(10)/(100)`
`=500xx((11)/(10))^(3)`
Amount of different years from a G.P. , for which `a=Rs.500,r=(11)/(10)`
Amount after 10 years=11th term
`a*r^(10)=50xx((11)/(10))^(10)`
`=Rs. 500xx(1.1)^(10)`