In a bank, principal increases continuously at the rate of 5% per year. An amountof Rs 1000 is deposited with this bank, how much will it worth after 10 years`(e^(0. 5)=1. 648)`

Explanation

To solve the problem of how much an amount of Rs 1000 will be worth after 10 years in a bank where the principal increases continuously at a rate of 5% per year, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the Variables**:
- Let \( P \) be the principal amount.
- The rate of increase is 5% per year, which can be expressed as \( r = 0.05 \).
- The initial amount deposited is \( P_0 = 1000 \).
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