Question

After how many years will a sum of rs 12500 become rs rs. 17500 at the rate of 10% per annum

Answer 1

Given:

Principle,

P = Rs.12500

Amount,

A = Rs.17500

Interest rate,

r = 10% i.e., 0.1

To Find:

Time, t = ??

Solution:

As we know,

⇒ $A=P(1+r)^t$

On substituting the estimated values, we get

⇒ $17500=12500(1+0.1)^t$

⇒ $\frac{17500}{12500} =(1.1)^t$

⇒ $t=3.53 \ years$

Therefore, the time will be "3.53 years".