Question

In what time will 10,000 amount to 12,100 at 10% per annum, compounded annually?​

Answer 1

Answer:

The required time period is two years

Step-by-step explanation:

In a situation of annually-compounded interest, we have:

A = P * (1 + R/100) ^T

In the given problem, we have:

P = 10000

A = 12100

R = 10

T = ?

12100 = 10000 * (1 + 10/100)^T

12100 = 10000 * (1.1)^T

1.21 = 1.1^T

1.1^T = 1.21

(1.1)^T = (1.1)^2 ...(Expressing 1.21 as 1.1^2)

T = 2 (Using laws of indices)