How long will it take for Rs 40000 to become Rs 44100 at 5% annual compound interest
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20
Answer:
2 years
Step-by-step explanation:
Amount (A) = Rs.44100
Principal (P) = Rs.40000
Rate (R) = 5%
Let the number of years be n.
A = P × (1 + R/100)ⁿ
=> 44100 = 40000 × (1 + 5/100)ⁿ
=> 44100/40000 = (1 + 1/20)ⁿ
=> 441/400 = (21/20)ⁿ
=> (21/20)² = (21/20)ⁿ
=> n = 2
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