Question

In what time will Rs. 1500 yield Rs. 496.50 as compound interest at 10% per annum compounded annually?

Answer 1

Given P = Rs. 1500, I = 496.50, R = 10%

A = P+I

⇒ A =Rs. 1500+Rs. 496.50=Rs. 1996.50

`A = P(1 + R/100)^n`

`=> 1996.50 = 1500 (1 + 10/100)^n`

`=> 1996.50/1500 = (1 +1/10)^n`

`=> 1.331 = (1.1)^n`

`=> (1.1)^3 = (1.1)^n`

`=> n = 3`