Skip to content
Exercise 5.3 · Q11

Q.What will Rs.500500 amount to in 1010 years after its deposit in a bank which pays annual interest rate of 10%10\% compounded annually?

Tamil Nadu DgeTextbookSubjectiveImportance★★★★★
39% · 37/95 Questions
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Compound interest compounds the principal by a fixed ratio each year — a GP — so the amount after 10 years is P(1+r)10P(1+r)^{10}.

Step 1. Set up the compound-growth formula. A=P(1+r)nA=P(1+r)^n with P=500, r=0.1=110, n=10P=500,\ r=0.1=\dfrac1{10},\ n=10.

Step 2. Substitute. A=500(1+110)10=500(1110)10=500×11101010A=500\left(1+\dfrac1{10}\right)^{10}=500\left(\dfrac{11}{10}\right)^{10}=\dfrac{500\times11^{10}}{10^{10}}.

Step 3. Compute 111011^{10}. 1110=2593742460111^{10}=25937424601.

Step 4. Substitute and simplify. …

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.