Question

in how many years will rupees 4000 amount to rupees 4630.50 at 5% per annum, compounded annually​

Answer 1

Answer:

as it is compounded annually the formula for compound interest is

a=p[ 1+r/100]to the power of  n

given

principal = 4000

amount= 4630.50

rate = 5%

time [n] = n

applying the formula we get

                                             

4630.50 = 4000 [1+5/100] to the power of n

4630.50 = 4000[1+1/20] to the power of n

4630.50 = 4000 [21/20] to the power of n

4630.50/4000 = 21/20 to the power of n