Question

In how much time will a sum of Rs 1600 amount to Rs 1852.20 at 5 % per annum compounded annually?​

Answer 1

3 years is correct answer...

Answer 2

Given A = 1852.20, P = 1600, R = 5%.

We know that A = P(1 + r/100)^n

                        1852.20 = 1600(1 + 5/100)^n

                        1852.20 = 1600(105/100)^n

                        1852.20 = 1600(1.05)^n

                        1852.20/1600 = (1.05)^n

                        1.157625 = (1.05)^n

                        (1.05)^3 = (1.05)^n

                          n = 3.

Therefore in 3 years the rupees 1600 amount to rupees 1852.20 at 5% P.A.

Hope this helps!