Q. 565.0( 1 Vote )
In a bank principal increases at the rate of 5% per year. An amount of ` 1000 is deposited with this bank, how much will it worth after 10 years (e0.5 = 1.648).
Let p, and t represent the principal, time respectively.
It is the given that the principal increases continuously at the rate of 5% per year.
Integrating both sides, we get:
= p = .....-(i)
It is given that when t = 0, p = 1000
= 1000 = ec .....--(2)
Putting t = 10,we get
= p = 1000 x 1.648
= p = 1648
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