Question 1. In which of the following situations does the list of numbers involved make an arithmetic progression and why?
Iv. The amount of money in the account every year, when Rs 10,000 is deposited at compound interest at 8% per annum.
Solution: Given: Total initial amount deposited = Rs 10000 (A1)
Total number of interest per annum = 8%
Now,
Let number of amount after ist year, we use formula: A = P(1+R/100)t
= 10000 ( 1 + 8/100)1
= 10000 ( 108/100)
= 10800 (A2)
Similarly, Let number of amount after 2nd year, we use formula: A = P(1 + R/100)t
10000 ( 1 + 8/100)2
= 10000 (108/100) (108/100)
= (108) (108) = 11664 (A3)
To check
Difference: A2 - A1
= 10800 - 10000
= 800
Difference= A3 - A2
= 11664 - 10800
= 864
Hence, it does not form an AP (Arithmetic Progression) because the difference is not same.
