Question

In how many years will Rs. 5000 becomes Rs. 6000 at the rate
of 5% per annum

Answer 1

Step-by-step explanation:

SIMPLE INTEREST

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

t = (1/0.05)((6000/5000) - 1) = 4

t = 4 years

COMPOUND INTEREST

Calculation :

First, convert R as a percent to r as a decimal

r = R/100

r = 5/100

r = 0.05 per year,

Then, solve the equation for t

t = ln(A/P) / n[ln(1 + r/n)]

t = ln(6,000.00/5,000.00) / ( 1 × [ln(1 + 0.05/1)] )

t = ln(6,000.00/5,000.00) / ( 1 × [ln(1 + 0.05)] )

t = 3.737 years

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