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Ajesh saves Rs 50,000 every year and deposits the money in a bank at compound interest of 10%(compunded annually).What would be his total saving at the end of the 5th year?
- a)Rs 3,05,255
- b)Rs 1,05,255
- c)Rs 8,05,255
- d)Rs 4,05,255
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Ajesh saves Rs 50,000 every year and deposits the money in a bank at c...
At the end of the 1st year, he will get Rs 50000, it will give him interest for 4 years compounded annually
Hence at the end of 5 years, this amount will become 50000(1.1)4
Similarly, the amount deposited in the 2nd year will give interest for 3 years. Hence it will become 50000(1.1)3
Similarly, we can calculate for the remaining years.
The total saving at the end of the 5th year would be a GP, given by
Net saving = 50000(1.1)4 + 50000(1.1)3 ..... 50000
Thus net saving =
= Rs 3,05,255
Hence at the end of 5 years, this amount will become 50000(1.1)4
Similarly, the amount deposited in the 2nd year will give interest for 3 years. Hence it will become 50000(1.1)3
Similarly, we can calculate for the remaining years.
The total saving at the end of the 5th year would be a GP, given by
Net saving = 50000(1.1)4 + 50000(1.1)3 ..... 50000
Thus net saving =
= Rs 3,05,255Most Upvoted Answer
Ajesh saves Rs 50,000 every year and deposits the money in a bank at c...
Given:
Ajesh saves Rs 50,000 every year.
Compound interest rate is 10% per annum (compounded annually).
Time period is 5 years.
To find:
Total savings at the end of the 5th year.
Solution:
To calculate the total savings at the end of the 5th year, we need to find the future value of the annual savings.
Step 1: Identify the formula for compound interest.
The formula for compound interest is:
Future Value (FV) = Principal (P) * (1 + r/n)^(nt)
Where:
P = Principal amount (initial savings)
r = Annual interest rate (in decimal)
n = Number of times the interest is compounded per year
t = Number of years
Step 2: Calculate the future value of each year's savings separately.
Since Ajesh saves Rs 50,000 every year, the principal amount for each year will be Rs 50,000.
The annual interest rate is 10%, which can be written as 0.10 in decimal form.
The interest is compounded annually, so n = 1.
The time period for each year is 1 year.
Year 1:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV1) = 50000 * (1 + 0.10/1)^(1*1)
FV1 = 50000 * (1 + 0.10)^1
FV1 = 50000 * (1.10)
FV1 = Rs 55000
Year 2:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV2) = 50000 * (1 + 0.10/1)^(1*2)
FV2 = 50000 * (1 + 0.10)^2
FV2 = 50000 * (1.10)^2
FV2 = Rs 60500
Year 3:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV3) = 50000 * (1 + 0.10/1)^(1*3)
FV3 = 50000 * (1 + 0.10)^3
FV3 = 50000 * (1.10)^3
FV3 = Rs 66550
Year 4:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV4) = 50000 * (1 + 0.10/1)^(1*4)
FV4 = 50000 * (1 + 0.10)^4
FV4 = 50000 * (1.10)^4
FV4 = Rs 73205
Year 5:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (
Ajesh saves Rs 50,000 every year.
Compound interest rate is 10% per annum (compounded annually).
Time period is 5 years.
To find:
Total savings at the end of the 5th year.
Solution:
To calculate the total savings at the end of the 5th year, we need to find the future value of the annual savings.
Step 1: Identify the formula for compound interest.
The formula for compound interest is:
Future Value (FV) = Principal (P) * (1 + r/n)^(nt)
Where:
P = Principal amount (initial savings)
r = Annual interest rate (in decimal)
n = Number of times the interest is compounded per year
t = Number of years
Step 2: Calculate the future value of each year's savings separately.
Since Ajesh saves Rs 50,000 every year, the principal amount for each year will be Rs 50,000.
The annual interest rate is 10%, which can be written as 0.10 in decimal form.
The interest is compounded annually, so n = 1.
The time period for each year is 1 year.
Year 1:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV1) = 50000 * (1 + 0.10/1)^(1*1)
FV1 = 50000 * (1 + 0.10)^1
FV1 = 50000 * (1.10)
FV1 = Rs 55000
Year 2:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV2) = 50000 * (1 + 0.10/1)^(1*2)
FV2 = 50000 * (1 + 0.10)^2
FV2 = 50000 * (1.10)^2
FV2 = Rs 60500
Year 3:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV3) = 50000 * (1 + 0.10/1)^(1*3)
FV3 = 50000 * (1 + 0.10)^3
FV3 = 50000 * (1.10)^3
FV3 = Rs 66550
Year 4:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (FV4) = 50000 * (1 + 0.10/1)^(1*4)
FV4 = 50000 * (1 + 0.10)^4
FV4 = 50000 * (1.10)^4
FV4 = Rs 73205
Year 5:
P = Rs 50,000
r = 0.10
n = 1
t = 1
Future Value (
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Community Answer
Ajesh saves Rs 50,000 every year and deposits the money in a bank at c...
At the end of the 1st year, he will get Rs 50000, it will give him interest for 4 years compounded annually
Hence at the end of 5 years, this amount will become 50000(1.1)4
Similarly, the amount deposited in the 2nd year will give interest for 3 years. Hence it will become 50000(1.1)3
Similarly, we can calculate for the remaining years.
The total saving at the end of the 5th year would be a GP, given by
Net saving = 50000(1.1)4 + 50000(1.1)3 ..... 50000
Thus net saving == Rs 3,05,255
Hence at the end of 5 years, this amount will become 50000(1.1)4
Similarly, the amount deposited in the 2nd year will give interest for 3 years. Hence it will become 50000(1.1)3
Similarly, we can calculate for the remaining years.
The total saving at the end of the 5th year would be a GP, given by
Net saving = 50000(1.1)4 + 50000(1.1)3 ..... 50000
Thus net saving =
= Rs 3,05,255
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Ajesh saves Rs 50,000 every year and deposits the money in a bank at compound interest of 10%(compunded annually).What would be his total saving at the end of the 5th year?a)Rs 3,05,255b)Rs 1,05,255c)Rs 8,05,255d)Rs 4,05,255Correct answer is option 'A'. Can you explain this answer?
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Ajesh saves Rs 50,000 every year and deposits the money in a bank at compound interest of 10%(compunded annually).What would be his total saving at the end of the 5th year?a)Rs 3,05,255b)Rs 1,05,255c)Rs 8,05,255d)Rs 4,05,255Correct answer is option 'A'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Ajesh saves Rs 50,000 every year and deposits the money in a bank at compound interest of 10%(compunded annually).What would be his total saving at the end of the 5th year?a)Rs 3,05,255b)Rs 1,05,255c)Rs 8,05,255d)Rs 4,05,255Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ajesh saves Rs 50,000 every year and deposits the money in a bank at compound interest of 10%(compunded annually).What would be his total saving at the end of the 5th year?a)Rs 3,05,255b)Rs 1,05,255c)Rs 8,05,255d)Rs 4,05,255Correct answer is option 'A'. Can you explain this answer?.
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