A man saves Rs500 at the end of each year and lends the money at 10percent compound interest. How much will it become at the end of 4years
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A man saves Rs500 at the end of each year and lends the money at 10percent compound interest. How much will it become at the end of 4years
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THANKS FOR THE QUESTION !______________________________
ANS :
............... 2556.55 RS ...............
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GIVEN :
=> A MAN SAVES 500 RS AT EVERY END OF THE YR .....
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THE INTEREST TAKEN BY :
=> COMPOUND INTEREST
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TO FIND :
=> AFTER 4 YRS HIS SAVING
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AT THE 1ST YR :
PRINCIPAL :
=> 500RS
RATE OF INTEREST :
=> 10%
PERIOD :
=> 1 YR
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AMOUNT OF COMPOUND INTEREST :
=> P ( 1 + R / 100 ) ^ N
=> 500 ( 1 + 10 / 100 ) ^ 1
=> 500 ( 11 / 10 ) ^ 1
=> 500 * 11 / 10
=> 550 RS
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AFTER 2 YRS :
=> PRINCIPAL :
=> PREVIOUS AMOUNT + NEW 500 RS
=> 550 + 500
=> 1050 RS
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PERIOD :
=> 1 YR
RATE OF INTEREST :
=> 10 %
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AMOUNT OF COMPOUND INTEREST :
=> P ( 1 + R / 100 ) ^ N
=> 1050 ( 1 + 10 / 100 ) ^ 1
=> 1050 ( 11 / 10 ) ^ 1
=> 1050 * 11 / 10
=> 1155 RS
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AFTER 3 YR :
=> PRINCIPAL :
=> PREVIOUS AMOUNT + NEW 500 RS
=> 1155 RS + 500 RS
=> 1655 RS
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PERIOD :
=> 1 YR
RATE OF INTEREST :
=> 10%
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AMOUNT OF COMPOUND INTEREST :
=> P ( 1 + R / 100 ) ^ N
=> 1655 ( 1 + 10 / 100 ) ^ 1
=> 1655 * 11 / 10
=> 1,820.5 RS
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AFTER 4 YRS :
=> PRINCIPAL :
=> PREVIOUS AMOUNT + NEW 500 RS
=> 1820.5 RS + 500 RS
=> 2320.5 RS
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PERIOD :
=> 1 YR
RATE OF INTEREST :
=> 10 %
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AMOUNT OF COMPOUND INTEREST :
=> P ( 1 + R / 100 ) ^ N
=> 2320.5 ( 1 + 10 / 100 ) ^ 1
=> 2320.5 * 11 / 10
=> 2552.55 RS
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NOTE :
AT EACH TIME PRINCIPAL OF THE INTEREST IS CHANGING . THAT'S WHY IT IS NECESSARY TO CALCULATE THE AMOUNT OF COMPOUND INTEREST FOR EVERY PRINCIPLE SEPERATELY ......
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HOPE IT WILL HELP U ......
THANKS AGAIN .......
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