Question

10. Find the time if 8000 lent at C.I. at 20% amount to 8820; the interest being compounded quarterly ​

Answer 1

Answer:

The time required is 0.5 year

Step-by-step explanation:

Given : Principle amount P = 8000

           Compound interest amount A= 8820

            interest rate R= 20%

           compounding frequency = N = quarterly = 4

          period T = ?

Solution : Compound interest amount A = P( 1+ R/Nx100)^NT

Substituting the values, we get

8820 = 8000 x (1+ 20/4x100)^4T

8820/8000 =  (1+ 20/4x100)^4T

1.1025 = (1.05)^4T

1.05² = $1.05^{4T}$

Since bases are equal, then powers will be equal

4T = 2

T = 2/4

   = 1/2 year

   = 0.5 year