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In What Period of Time Will Rs. 12,000 Yield Rs. 3972 as Compound Interest at 10% per Annum, If Compounded on a Yearly Basis? - Mathematics

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Question

In what period of time will Rs. 12,000 yield Rs. 3972 as compound interest at 10% per annum, if compounded on a yearly basis?

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Solution

Principal, P = Rs. 12,000, Rate of interest, r = 10%, C.I. = Rs. 3972

`C.I. = P[(1 + R/100)^n - 1]`

`=> 3972 = 12000[(1 + 10/100)^n - 1]`

`=> 3972 = 12000[(11/10)^n - 1]`

`=> 3972/12000 + 1 = (11/10)^n`

`=> 1331/1000 = (11/10)^n`

`=> (11/10)^3 = (11/10)^n`

`=> n = 3  year`

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Concept of Compound Interest - Use of Compound Interest in Computing Amount Over a Period of 2 Or 3-years
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2010-2011 (March)

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