Question

5. In how many years will Rs. 900 amount to Rs. 1089 at 10% per annum when compounded annually? ​

Answer 1

Answer:

Principal P = Rs 1000,

Rate of interest R = 10%

Compounding interval = annual

SI=P*N*R/100

here SI=1080-900=180

i.e.180=900*N*10/100

=>180=90N

so,N=180/90=2

    hence it will take 2 years :)

Therefore in 2- years Rs 900 will become Rs 1089 at 10% compound interest.