Question

At the rate of 1%per annum compounded annually, how long would it take for a sum of rs.4000 to compound to rs.4040.

please help with a proper written solution.​

Answer 1

Answer:

1 year

Step-by-step explanation:

Given :

Principal ( P ) = 4000

Amount ( A ) = 4050

Rate of interest ( r ) = 1% = 1/100 = 0.01

Years ( n ) = ?

Solution :

A = P ( 1 + r ) ^n

4050 = 4000 ( 1 + 0.01 ) ^ n

4050/4000 = ( 1.01 ) ^ n

1.0125 = ( 1.01 ) ^ n

n = 1