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Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years?
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Mr. X invested a certain amount for 15 years in a term deposit scheme....
Given information:
- Mr. X invested a certain amount for 15 years in a term deposit scheme.
- An interest of $1250 was accrued for the 5th year.
- An interest of $5000 was accrued for the 11th year.
Calculation of interest rate:
To find the maturity value of the investment, we first need to calculate the interest rate.
Using the compound interest formula: A = P(1 + r/n)^(nt), where A is the maturity value, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years.
We can use the formula to find the interest rate for the 5th year:
$1250 = P(1 + r/1)^(1*5)
Simplifying the equation:
(1 + r)^5 = 1250/P
Similarly, for the 11th year:
$5000 = P(1 + r/1)^(1*11)
(1 + r)^11 = 5000/P
Calculation of maturity value:
To find the maturity value of the investment at the end of 15 years, we need to calculate the principal amount using the given information of the 5th and 11th year interest.
Using the formula (1 + r)^5 = 1250/P, we can find the value of P. Let's assume it to be P1.
Similarly, using the formula (1 + r)^11 = 5000/P, we can find the value of P. Let's assume it to be P2.
Now, we can calculate the maturity value using the formula A = P(1 + r/n)^(nt):
Maturity Value = P1(1 + r/1)^(1*15)
Conclusion:
Using the given information of interest accrued for the 5th and 11th year, we can calculate the interest rate and the maturity value of the investment at the end of 15 years.
- Mr. X invested a certain amount for 15 years in a term deposit scheme.
- An interest of $1250 was accrued for the 5th year.
- An interest of $5000 was accrued for the 11th year.
Calculation of interest rate:
To find the maturity value of the investment, we first need to calculate the interest rate.
Using the compound interest formula: A = P(1 + r/n)^(nt), where A is the maturity value, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years.
We can use the formula to find the interest rate for the 5th year:
$1250 = P(1 + r/1)^(1*5)
Simplifying the equation:
(1 + r)^5 = 1250/P
Similarly, for the 11th year:
$5000 = P(1 + r/1)^(1*11)
(1 + r)^11 = 5000/P
Calculation of maturity value:
To find the maturity value of the investment at the end of 15 years, we need to calculate the principal amount using the given information of the 5th and 11th year interest.
Using the formula (1 + r)^5 = 1250/P, we can find the value of P. Let's assume it to be P1.
Similarly, using the formula (1 + r)^11 = 5000/P, we can find the value of P. Let's assume it to be P2.
Now, we can calculate the maturity value using the formula A = P(1 + r/n)^(nt):
Maturity Value = P1(1 + r/1)^(1*15)
Conclusion:
Using the given information of interest accrued for the 5th and 11th year, we can calculate the interest rate and the maturity value of the investment at the end of 15 years.
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Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years?
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Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years?.
Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years?.
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Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years?, a detailed solution for Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years? has been provided alongside types of Mr. X invested a certain amount for 15 years in a term deposit scheme. An interest of 1250 was accrued for the 5th year whereas 5000 was accrued for the 11th year. If the interest is compounded annually, then what would be the maturity value of a sum of $10,000, invested today, at the end of 15 years? theory, EduRev gives you an
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