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intermediate(ipc)course (no) (1460 Points)

07 October 2011

a person invests Rs.500 at the end of each year with a bank which pays interest at 10% p.a. c.i annually.the amount standing to his credit one year after he has made his yearly investment for the 12th time is :

ans: Rs.11764.50.

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4 Replies

CA Arindam Dey (Chartered Accountant) (117 Points)
Replied 07 October 2011

Simple steps of solving using a calculator:- 500 multiplied by 1.1 (i.e.1 + 0.10)=550, press M+, repeat the operation i.e. 550 multiplied by 1.1, press M+, repeat the same operation i.e *1.1 and press M+ for 12 times. Press Memory recall( MRC), you will get the answer. Note: There may be a minor rounding off difference.

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ACMA Obulirajan R (M.Com, ACMA) (1119 Points)
Replied 07 October 2011

Month	Investment	Interest	Gross Value
1	500.00	50.00	550.00
2	500.00	105.00	1,155.00
3	500.00	165.50	1,820.50
4	500.00	232.05	2,552.55
5	500.00	305.26	3,357.81
6	500.00	385.78	4,243.59
7	500.00	474.36	5,217.94
8	500.00	571.79	6,289.74
9	500.00	678.97	7,468.71
10	500.00	796.87	8,765.58
11	500.00	926.56	10,192.14
12	500.00	1,069.21	11,761.36

Akhil Sharma (Service) (141 Points)
Replied 07 October 2011

	OB	Deposit	Intt @ 10%	CB
Year1	-	500.00	-	500.00
Year2	500.00	500.00	50.00	1,050.00
Year3	1,050.00	500.00	105.00	1,655.00
Year4	1,655.00	500.00	165.50	2,320.50
Year5	2,320.50	500.00	232.05	3,052.55
Year6	3,052.55	500.00	305.26	3,857.81
Year7	3,857.81	500.00	385.78	4,743.59
Year8	4,743.59	500.00	474.36	5,717.94
Year9	5,717.94	500.00	571.79	6,789.74
Year10	6,789.74	500.00	678.97	7,968.71
Year11	7,968.71	500.00	796.87	9,265.58
Year12	9,265.58	500.00	926.56	10,692.14
Year13	10,692.14	-	1,069.21	11,761.36