Theory of Intelligence
11TH•Mathematics•Sequences And Series•Question 8

Overview

A sum of Rs. 5000 is invested at 8% simple interest per year. Calculate the interest at the end of each year. Do these interests form an A.P.? If so find the interest at the end of 20 years making use of this fact.

Principal ( P = 5000 ), rate ( r = 8% ).

Interest for one year ( = \dfrac{5000\times 8\times 1}{100} = 400 ).

Interest at the end of each year (simple interest is calculated on the original principal each year): [ 400, 400, 400, \ldots ] (This is a constant sequence, which is a special A.P. with ( d = 0 ).)

Interest after 20 years ( = 20\times 400 = 8000 ).

Answer: Interests form an A.P. (with ( d=0 )); interest after 20 years = Rs. 8000

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