Question

In what time will a sum of ₹ 48,000 amount to ₹ 55,566 at 5% p.a. compounded annually?

Answer 1

Given, principal = ₹ 48000

Amount = ₹ 55566

Rate of interest = 5% per annum

Amount = `P(1 + r/100)^t`

∴ `48000(1 + 5/100)^t = 55566`

⇒ `(1 + 1/20)^t = 55566/48000`

⇒ `(21/20)^t = 9261/8000`

⇒ `(21/20)^t = (21/20)^3`

⇒ t = 3

Hence, the required time period is 3 years.