In a bank, principal increases continuously at the rate of 5% per year. An amount of Rs 1000 is deposited with this bank, how much will it worth after 10 years (e 0.5 = 1.648).

Question

Philoid · Accepted Answer

Let p and t be principal and time respectively.

Given that principal increases continuously at rate of 5% per year.

Separating variables,

Integrating both sides,

When t = 0, p = 1000

At t = 10

So after 10 years the total amount would be Rs.1648

In a bank, principal increases continuously at the rate of 5% per year. An amount of Rs 1000 is deposited with this bank, how much will it worth after 10 years (e0.5 = 1.648).

In a bank, principal increases continuously at the rate of 5% per year. An amount of Rs 1000 is deposited with this bank, how much will it worth after 10 years (e^0.5 = 1.648).