In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.
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Given Principal Amount= P= 700
Rates of interest Per annum= i =10% p.a
Time= n = ?
Compounded amount= 847
We know that
Compound amount = P(1+i)^n
847 =700[ (1+10/100)^n
847 =700[(1 + 0.1)^n
847 =700[ (1.1)^n
847 / 700=(1.1)^n
1.21= (1.1)^n
we can write 1.21 as 1.1 ×1.1 =(1.1)^2
(1.1)^2= (1.1)^n
Bases are equal equate the powers
2 = n...it takes 2 years for 700 to become 847 at 10.%p.a
Rates of interest Per annum= i =10% p.a
Time= n = ?
Compounded amount= 847
We know that
Compound amount = P(1+i)^n
847 =700[ (1+10/100)^n
847 =700[(1 + 0.1)^n
847 =700[ (1.1)^n
847 / 700=(1.1)^n
1.21= (1.1)^n
we can write 1.21 as 1.1 ×1.1 =(1.1)^2
(1.1)^2= (1.1)^n
Bases are equal equate the powers
2 = n...it takes 2 years for 700 to become 847 at 10.%p.a
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