Question

(a) In what time an amount of
compounded annually ?
1000 will become 1331 at the rate of 10% p.a.​

Answer 1

Step-by-step explanation:

3 years

Let the required time be n years, Then,

1331=1000\left ( 1+\frac{10}{100} \right )^{n}

=>\frac{1331}{1000}=\left ( \frac{10+1}{10} \right )^{n}

=>\left ( \frac{11}{10} \right )^{n}=\left ( \frac{11}{10} \right )^{3}

=>n=3