question_answer 57)

In a bank principal increases at the rate of 5% per year. An amount of Rs.1000 is deposited with this bank, how much it worth after 10 years (e0.5 = 1.648). 

Answer:

Let P0 be the initial principal and the principal after t years be Pt.       Given P0 = Rs. 1000, t = 10 years,       r = 5% per year       According the questions.                         When t = 0, P = P0 = Rs.1000                                     When t = 10, P = Pt