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).

Answer :

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)


Now,


Putting t = 10,we get


=


=


= p = 1000 x 1.648


= p = 1648


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Interactive Quiz on DIfferential CalculusFREE Class
Functional Equations - JEE with ease48 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses