Rs 500 deposited at 10 percent compounded annually grows each year by a constant ratio of:
- 10.0
- 0.10
- 1.10
- 1.01
Show answer and solution
Correct answer: C. 1.10
1. Each year the amount gains 10 percent.
2. So it is multiplied by 1.10.
3. The yearly amounts form a G.P. with ratio 1.10.
_Source: syllabus Mathematics, Chapter 8, Sequences and Series._