Question

If a man saves Rs. 1000 each year and invests at the end of the year at 5% compound interest, how much will the amount be at the end of 15 years?

Answer 1

Total = Principal * (1 + rate) ^ years

We have to calculate and add 15 years of interest

1,000 * (1.05)^15 = 2,078.93
14 1.9799315994
13 1.8856491423
12 1.795856326
11 1.7103393581
10 1.6288946268
9 1.551328216
8 1.4774554438
7 1.4071004227
6 1.3400956406
5 1.2762815625
4 1.21550625
3 1.157625
2 1.1025
1 1.05

Multiplying those amounts by 1,000 and then totalling them =
22,657.49

and here's a compound interest calculator to check those calculations:
http://www.1728.org/compint.htm

Answer 2

a. 21478
b 21578<----
c 22578
d 22478
e 22178

Answer 3

Hmm seems the answer has to be one of those huh?
I'm guessing it should be for 14 years.

Answer 4

the hint is given

Answer 5

The 14 year total = 21,578.56

Answer 6

it says required answer will be by adding 20 terms of the GP starting with the first term as 1000 and the common ratio as 1.05

Answer 7

But it should only be 15 terms not 20

Answer 8

i dont understand why it says 20 years?

Answer 9

I don't either - probably a typo.

Answer 10

Anyway here it is for 15 years (actually 14 years)
14 1,979.93
13 1,885.65
12 1,795.86
11 1,710.34
10 1,628.89
9 1,551.33
8 1,477.46
7 1,407.10
6 1,340.10
5 1,276.28
4 1,215.51
3 1,157.63
2 1,102.50
1 1,050.00
0 1,000.00

TOTAL = 21,578.56

Answer 11

thanks for help

Answer 12

u r welcome :-)

Answer 13

http://www.wolframalpha.com/input/?i=1000%28%281.05%29%5E15+-1%29%2F%281.05-1%29

Answer 14

it was a typo

Answer 15

I thought so.

Answer 16

That wolframalpha link is okay, but with my calculator you don't need parentheses, etc.

Answer 17

well in exams i cant use both ....so i better work with my hand

Answer 18

Absolutely. In an exam you are much better off if you know it completely.