# Thread: Application of Ap/GP 2

1. ## Application of Ap/GP 2

i invest RM 500 at a fixed amount rate interest of 5%. At the and of the first year i shall have RM 525 in my account. I live the money in the account for 6 years.
(a) after how many years will my account first have more than RM 600?
(ans:4)

(b) How much money shall i have in the account at the end of the sixth year?
(ans: rm 670.04)

nik

2. Originally Posted by nikk
i invest RM 500 at a fixed amount rate interest of 5%. At the and of the first year i shall have RM 525 in my account. I live the money in the account for 6 years.
(a) after how many years will my account first have more than RM 600?
(ans:4)
I=Interest
P=Principal Amount
R=RAte
T=Time

$\displaystyle T=\frac{I}{PR}$

$\displaystyle T=\frac{100}{500*.05}$

$\displaystyle T=\frac{100}{25}$

$\displaystyle T=4 years$

(b) How much money shall i have in the account at the end of the sixth year?

(ans: rm 670.04)
$\displaystyle I=PRT$

$\displaystyle I = 500*.05 * 6$

$\displaystyle I = 150$

then add the principal and interest
500+150 = RM 650 after 6 years

i have a different answer for no. 2

3. Originally Posted by princess_21
I=Interest
P=Principal Amount
R=RAte
T=Time

$\displaystyle T=\frac{I}{PR}$

$\displaystyle T=\frac{100}{500*.05}$

$\displaystyle T=\frac{100}{25}$

$\displaystyle T=4 years$

$\displaystyle I=PRT$

$\displaystyle I = 500*.05 * 6$

$\displaystyle I = 150$

then add the principal and interest
500+150 = RM 650 after 6 years

i have a different answer for no. 2

do u know how to use progression (AP or GP) to solve both of the question??

4. Originally Posted by nikk
do u know how to use progression (AP or GP) to solve both of the question??
The interest is charged for 4 years
Each year the interest remains same

P*R hence it becomes the common difference

and the Principal(P) is the first term of AP

Hence you needed to find the 5th term (ie; end of 4th year) using
$\displaystyle T_n=a+(n-1)d$

where d is common difference , a is the first term and n is the term number