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A person invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time?
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A person invest rs 500 at the end of each year with a bank which pays ...
Calculation of Amount at the End of 12th Year
The given problem involves yearly investments made at the end of each year with a bank that pays interest at 10% per annum compounded annually. The person invests Rs. 500 each year for 12 years. The amount standing to his credit one year after he has made his yearly investment for the 12th time needs to be calculated.
Calculation of Interest Earned
Since the interest is compounded annually, the formula for calculating the amount at the end of 12 years will be:
A = P (1 + R/100)^n
where A is the amount at the end of 12 years, P is the principal (the yearly investment made), R is the rate of interest and n is the number of years.
For the given problem, P = Rs. 500, R = 10% and n = 12.
Therefore,
A = 500 (1 + 10/100)^12
A = 500 (1.1)^12
A = 500 x 3.10585
Calculation of Final Amount
Now, to calculate the amount standing to his credit one year after he has made his yearly investment for the 12th time, we need to add the interest earned in the 12th year to the amount calculated above.
The interest earned in the 12th year will be:
I = P (1 + R/100) - P
where I is the interest earned, P is the principal and R is the rate of interest.
For the given problem, P = Rs. 500 and R = 10%.
Therefore,
I = 500 (1 + 10/100) - 500
I = 500 x 0.1
I = Rs. 50
Thus, the final amount standing to his credit one year after he has made his yearly investment for the 12th time will be:
Final Amount = A + I
Final Amount = 1552.93 + 50
Final Amount = Rs. 1602.93
Conclusion
Therefore, the person will have Rs. 1602.93 standing to his credit one year after he has made his yearly investment for the 12th time.
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A person invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time?
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A person invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time? 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 invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time?.
A person invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time? 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 invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invest rs 500 at the end of each year with a bank which pays interest at 10%pa CI annually. The amount standing to his credit one year after he has made his yearly investment for the 12th time?.
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