00:01
So here there are two parts of the question.
00:01
In first part it was asked that we deposit rupees of like an amount of $300 in an account earning 5 percentage interest compounded annually.
00:13
So if we consider both the equations, it was mentioned that both the interests are compound interest.
00:20
So i'm just adding the equation to find the value or the equation that will be using for compound interest.
00:26
This is the compound interest formula that is a, is the amount that will be attaining after some time t and p is the principal amount that we deposited and r is the rate of interest and n is the number of times the interest compounds per unit so in the first part of the question i'm just extracting all the values for to like use this equation or to put it in this equation to find what we need so the amount deposited was 300 dollars so for a part sorry the principal was $300 and account is earning 5 percentage interest so rate of interest is 5 percentage and this is equal to 0 .05 in decimal basis because 5 by 100 i can write and the question was asked to find yeah it was mentioned that interest compounded annually so the number of times the interest compounded per time is n is one because it is compounding annually only.
01:35
And we have to find the value of a after time 10 years.
01:42
So this is what we have to find and we have to find the value of a from this.
01:48
So this a will be equal to p that is 300 into 1 plus r was 0 .05 by n.
01:59
It will be 1 so i won't be writing that 0 .05 hold to the power of n into t that is 1 into 10 so this value will be equal to we can just find that very easily 1 .05 raise to 10 into 300 that is equal to 488 488 .66 dollars so if you have to round this value i can write it as $489...