 Welcome to our session, let us discuss the following question. The question says, what will Rs 500 amount to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually? Now we begin with the solution. Let P be the principal but be the rate of interest per annum to be number of years. First year, that is P into P into 1, that is P into 1 plus mine, that what will Rs 500 amount to in 10 years? Now that means we have to find 11th term of this GP. We know that the general term of a GP is given by A into R to the power N minus 1, that is equal to