In what time will Rs. 1500 yield Rs. 496.50 as compound interest at 10% per annum compounded annually?
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Solution
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`
Concept: Concept of Compound Interest - Use of Compound Interest in Computing Amount Over a Period of 2 Or 3-years
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