Question

A person took a loan of RS 46875.If the rate of compound interest is 4 paisa per rupees per year. in how many year will compund interest be 5853...

Answer 1

Given info : A person took a loan of Rs. 46975. the rate of compound interest is 4 paisa per rupee per year.

To find : how many years will compound interest be Rs. 5853 ?

solution : rate , r = 4 paisa per rupee per year means 4 % per annum

[ as 1 rupee = 100 paisa so, in percent = 4/100 × 100 = 4 % ]

principal, P = 46875

C.I = 5853

so A = C.I + P = 5853 + 46875 = 52728

now using formula,

A = P(1 + r/100)ⁿ

⇒52728 = 46875(1 + 4/100)ⁿ

⇒52728/46875 = (1 + 1/25)ⁿ

⇒17576/15625 = (26/25)ⁿ

⇒(26/25)³ = (26/25)ⁿ

⇒3 = n

Therefore after three years, compound interest will be Rs. 5853.