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A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is?
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A person invests Rs.500 at the end of each year with bank which pay in...
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A person invests Rs.500 at the end of each year with bank which pay in...
Investment Calculation with Compound Interest
Given:
- Principal amount (P) = Rs. 500
- Annual interest rate (R) = 10%
- Interest is compounded annually
Objective:
To calculate the amount standing to the person's credit one year after making the yearly investment for the 12th time.
Solution:
Step 1: Calculation of interest for each year:
Since the interest is compounded annually, we need to calculate the interest for each year. The formula for compound interest is:
A = P(1 + R/100)^n
Where:
A = Final amount
P = Principal amount
R = Annual interest rate
n = Number of years
For the first year:
A₁ = P(1 + R/100)
A₁ = 500(1 + 10/100)
A₁ = 500(1 + 0.1)
A₁ = 500(1.1)
A₁ = Rs. 550
For the second year:
A₂ = P(1 + R/100)
A₂ = 500(1 + 10/100)
A₂ = 500(1 + 0.1)
A₂ = 500(1.1)
A₂ = Rs. 550
Similarly, we calculate the interest for each year up to the 12th year.
Step 2: Calculation of total amount:
To calculate the total amount standing to the person's credit after 12 years, we need to sum up all the individual amounts for each year.
Total amount = A₁ + A₂ + A₃ + ... + A₁₂
Total amount = Rs. 550 + Rs. 550 + Rs. 550 + ... + Rs. 550 (12 times)
Total amount = 12 * Rs. 550
Total amount = Rs. 6600
Conclusion:
The amount standing to the person's credit one year after making the yearly investment for the 12th time is Rs. 6600.
Given:
- Principal amount (P) = Rs. 500
- Annual interest rate (R) = 10%
- Interest is compounded annually
Objective:
To calculate the amount standing to the person's credit one year after making the yearly investment for the 12th time.
Solution:
Step 1: Calculation of interest for each year:
Since the interest is compounded annually, we need to calculate the interest for each year. The formula for compound interest is:
A = P(1 + R/100)^n
Where:
A = Final amount
P = Principal amount
R = Annual interest rate
n = Number of years
For the first year:
A₁ = P(1 + R/100)
A₁ = 500(1 + 10/100)
A₁ = 500(1 + 0.1)
A₁ = 500(1.1)
A₁ = Rs. 550
For the second year:
A₂ = P(1 + R/100)
A₂ = 500(1 + 10/100)
A₂ = 500(1 + 0.1)
A₂ = 500(1.1)
A₂ = Rs. 550
Similarly, we calculate the interest for each year up to the 12th year.
Step 2: Calculation of total amount:
To calculate the total amount standing to the person's credit after 12 years, we need to sum up all the individual amounts for each year.
Total amount = A₁ + A₂ + A₃ + ... + A₁₂
Total amount = Rs. 550 + Rs. 550 + Rs. 550 + ... + Rs. 550 (12 times)
Total amount = 12 * Rs. 550
Total amount = Rs. 6600
Conclusion:
The amount standing to the person's credit one year after making the yearly investment for the 12th time is Rs. 6600.
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A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is?
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A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is?.
A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invests Rs.500 at the end of each year with bank which pay interest at 10%p.a C.I. anuually.the amount standing to his credit one year after he had made his yearly investment for the 12 time is?.
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