Answer :

(i) R

Amount (A) = P (1 + R/100)^{n} [Where, A = Amount with compound interest

P = Present value

R = Annual interest rate

n = Time in years]

(ii) Compound interest

Amount (A) = P (1 + R/100)^{n}

And Compound interest = P (1 + R/100)^{n} - P

(iii) Rs.

∵ Rate decreases.

∴ Value = P (1 - R/100)^{n}

Present value of machine = Rs.P

Interest rate = R% per annum

Time, n = 2

∴ Value = Rs.

(iv)

Present population of a town = P

Increases rate = R% per annum

Time, n = 5 years

∴ Population = P (1 + R/100)^{n} [Where,

P = Present value

R = Annual interest rate

n = Time in years]

∴ Population after 5 years =

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