Question

(i) In what time will 1500 yield 496.50 as compound interest at 10% per annum
compounded annually?
(ii) Find the time (in years) in which 12500 will produce 3246.40 as compound
interest at 8% per annum, interest compounded annually.
​

Answer 1

Step-by-step explanation:

P=Rs1,500

C.I.=Rs496.50

A=P+C.I.=1,500+496.50=Rs1996.50

On interest being compounded for N years,

Amount=P(1+

100

R

)

N

1996.50=1,500×(1+

100

10

)

N

1,500

1996.50

=(

10

11

)

N

1000

1331

=(

10

11

)

N

10

3

11

3

=(

10

11

)

N

=>N=3 years