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Question

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

4) The amount of money in the account every year , when Rs.10,000 is deposited at compound interest at 8%/annum.

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Solution

The above case donot from an arithmetic progression.
In first year 8% of 10000 interest is added.Which is 800rs.
In second year 8% of 10800 is added as interest. Which is 864rs.
In third year 8% of 11664 rs is added as interest which is 933.12 rs

If the above case was that of an arithmetic progression then the difference of money in 2nd and 1st year would be same as that of the difference in 3rd and second year.
Here the difference in money in first and second year = 800 rs
Differnce in money in 3rd and 2nd year = 864 rs.
And so on. So this isn't an arithmetic progression

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