Question

Find the time, in years, in which Rs 4,000 will produce Rs630.50 as
compound interest at 5% compounded annually.​

Answer 1

Answer:

We have,

CI=Rs.630.50,P=Rs.4000,R=5%,T=?

We know that

A=P+CI=P(1+

100

R

)

T

or, 4000+630.50=4000(1+

100

5

)

T

or, 4630.50=4000(1+

100

5

)

T

or, (1+

20

1

)

T

=1.157625

or, (1.05)

T

=1.157625

or, (1.05)

T

=(1.05)

3

or, T=3 years