Question

In the following situation, involved make an arithmetic progression? and why?

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

Answer 1

The amount at the end of 1^st year

= `10000 (1 + 8/100)^1`

The amount at the end of 2^nd year

= `10000 (1 + 8/100)^2`

The amount at the end of 3^rd year

= `10000 (1 + 8/100)^3`

The amount at the end of 4^th year

= `10000 (1 + 8/100)^4`

∴ The terms are

`1000 [10000 (1 + 8/100)]`

`[10000 (1 + 8/100)^2], [10000 (1 + 8/100)^3],...`

Obviously,

`[10000 (1 + 8/100)] - [10000]`

`≠ [10000 (1 + 8/100)^2] - [10000 (1 + 8/100)]`

∴ The above terms are not in A.P