Question

In what time an amount of Rs.1000 will become 1331 at the rate of 10% p.a. compounded annually?

Answer 1

Explanation:

Principal = Rs. 1000
Amount = Rs. 1331
Rate = 10% p.a.
Let the time be n years.
Then,
[ 1000 (1+ (10/100))^n ] = 1331 or (11/10)^n = (1331/1000) = (11/10)^3
n = 3 years