Question

In what time will Rs 15625 amount to Rs 17576 at 4% p.a. compound interest?

Answer 1

Here P = Rs.15625, A = 17576, r = 4%

Now, `"P"(1 + "r"/100)^"t"` = A

⇒ `15625(1 + 4/100)^"t"`

= 17576

⇒ `(26/25)^"t"`

= `(17576)/(15625)`

= `(26/25)^3`
By comparing powers, t = 3
Hence time is 3 years.