Question

In what time will 3,750 amount to 6,480 at 20% per annum compounded
annually?​

Answer 1

Answer:

The required time period is three years.

Step-by-step explanation:

P = initial amount = Rs.3750

R = rate of interest per cent per year = 20

T = time period in years = ?

A = final amount = Rs.6480

By formula for compound interest (annual compounding),

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

6480 = 3750*(1 + 20/100)^T

6480 = 3750*(1 + 0.2)^T

6480 = 3750*(1.2)^T

(1.2)^T = 6480/3750

(1.2)^T = 1.728

(1.2)^T = (1.2)^3

T = 3

The required time period is 3 years