Q7 of 176 Page 9

In which of the following situations does the list of numbers involved arithmetic progression, and why?

The amount of money in the account every year when Rs. 10000 is deposited at compound interest 8% per annum.

Original Amount = Rs. 10,000


Interest earned in first year = 10,000 × 8%



= Rs 800


Total amount outstanding after one year = Rs 10000 + 800


= Rs 10800


Now, interest earned in 2nd year


Total amount outstanding after 2nd year = Rs10800 + 864


= Rs 11664


Interest earned in 3rd year


= Rs 933.12


Total amount outstanding after 3rd year = Rs 11664 + 933.12


= Rs 12597.12


Therefore, the series is


10800, 11664, 12597.12,…


Difference between second and first term = 11664 – 10800


= 864


Difference between third and second term = 12597.12 – 11664


= 933.12


Since the difference is not same


Therefore, it doesn’t form an AP.


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