Question

In how many years will Rs.4000 grow to Rs 4410 at 5 percent rate compounded a annually?

Answer 1

let years = x

C I = P(1+R/100) ^x

4410 = 4000(1+5/100)^x

4000(105/100)^x = 4410

(105/100)^x = 4410/4000

(21/20) ^x = 4410/4000

(21/20) ^2 = 441/400

so,

x = 2 years