Question

The amount of money in the account every year, when \[10000\] Rs is deposited at compound interest \[8\%\] per annum.

Answer 1

Hint: From the given question we are asked to find the amount of money in the account when \[10000\] Rs is deposited at compound interest \[8\%\]. For solving this question we use the concept of compound interest and we use the formulae of the total amount in compound interest which is \[=P{{\left( 1+r \right)}^{n}}\]. Later we will simplify the equation using mathematical operations like division and multiplication etc..,

Complete step by step solution:
From the question we are given Amount \[=\]Rs \[10000\]
The interest per annum as \[=\]\[8\%\]
We know that from the compound interest the formulae for the total money will be as follows.
Total amount \[=P{{\left( 1+r \right)}^{n}}\]
Where, P is principal amount
r is the rate of interest
n is no of year
Compound interest increases depend on principle
Next year interest is interest on before year total
We will substitute the parameters given in the question with the total amount formulae we know from compound interest concept.
\[\Rightarrow 10000{{\left( 1+0.08 \right)}^{n}}\]
At the end of the first year,
\[\Rightarrow 10000\left( 1.08 \right)\]
\[\Rightarrow 10800\]
Every year the amount increases at \[1.08\] times
Therefore, the solution will increase at \[1.08\] times.

Note: Students should do the calculations very carefully. Students should have good knowledge in the concept of compound interest. Students should use the formula of total amount which is \[=P{{\left( 1+r \right)}^{n}}\] to solve the question.