What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?

Given: The amount deposited in bank is rupees 500.

The Compound interest is given by: A = P

Here p: principle, r: interest rate t: time in years, n: number of times interest is compounded in a year.

∴ At the end of first year A = 500 = 500(1.1)

∴ At the end of 10 years A = 500 = 500(1.1)¹⁰