Question

find the number of year for which the compound interest of rupees 5000 is rupees 500 at the rate of 10 p c p a​

Answer 1

Answer:

Solution

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It is given that

Principal (P) = 5000

Rate of interest = 10%b p.a. or 5% half- yearly

Period (n) = 1

2

1

or 3 half- years

We know that

A= P(1+r/100)

n

Substituting the values

=5000(1+5/100)

3

By further calculation

= 5000×21/20×21/20×21/20

= 5788.12

Here

CI= A - P

Substituting the values

=5788.12−5000

= 788.12