In a bank, principal increases at the rate of 5% per annum. An amount of ` 1000 is deposited in the bank. How much will it worth after 10 years?

Question

In a bank, principal increases at the rate of 5% per annum. An amount of ` 1000 is deposited in the bank. How much will it worth after 10 years? (Given e 0.5 = 1.648)

Philoid · Accepted Answer

Given: rate of interest = 5%

P(initial) = Rs 1000

And,

⇒

For t = 0, we have p = 1000

For t = 10 years we have,

Thus, principal is Rs1648 for t = 10 years.

In a bank, principal increases at the rate of 5% per annum. An amount of ` 1000 is deposited in the bank. How much will it worth after 10 years?(Given e0.5 = 1.648)

In a bank, principal increases at the rate of 5% per annum. An amount of ` 1000 is deposited in the bank. How much will it worth after 10 years?
(Given e^0.5 = 1.648)