Question

How long will it take for Rs 40000 to become Rs 44100 at 5% annual compound interest​

Answer 1

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