Question

In how many years will a sum of rs 5000 become Rs 6655 at the compound interest rate of 10% per annum?

Answer 1

hope it will help you.

Answer 2

In 3 years a sum of Rs 5000 will become Rs 6655 at 10% p.a. compounded anually

Given in the question,

Principal sum (P) = Rs 5000

The amount of money received after the stipulated time period is termed as Amount. So,

Amount (A) = Rs 6655

Also,

Rate of compound interest (r) = 10 %  p.a.

We know, Amount (A) in compound interest is given as:

A = P ( 1 + $\frac{r}{100}$)ⁿ

'n' is nothing but the conversion period, and we have to find this value of 'n'.

So, putting the values of P, A, and r, we get,

6655 = 5000(1+ $\frac{10}{100}$)ⁿ            

⇒ 6655 / 5000= (110/100)ⁿ

⇒  1331/1000 = (11/10)ⁿ

⇒  (11/10)ⁿ =  (11/10)³

        On comparing L.H.S and R.H.S, we can tell that n = 3.

So n = 3

Thus time required is 3 years.