Question

Question 7 (iii)
In which of the following situations, do the lists of numbers involved form an AP? Give reasons for your answers.
The amount of money in the account of Varun at the end of every year when Rs. 1000 is deposited at simple interest of $10\%$ per annum.

Answer 1

$Simpleinterest=\frac{Principal\times Rate\times Time}{100}$
$=\frac{1000\times 10\times 1}{100}=100$
So, the amount of money in the account of Varun at the end of every year is
1000, (1000 + 100 $\times$ 1), (1000 + 100 $\times$ 2), (1000 + 100 $\times$ 3)
i.e., 1000, 1100, 1200, 1300,……
Which form an AP, with common difference (d) = 1100 – 1000 = 100