Question

In what time will $5,400 amount to $6773.76 at 12% per annum compound interest?​

Answer 1

Simple interest on a certain sum of money for 4 years at 8% per annum is half the compound interest on Rs. 2000 for 2 years at 10% per annum. ... The difference between the compound interest and the simple interest for two years on a certain sum at a certain rate of interest is RS 64.

Answer 2

$\mathfrak{\underline{\underline{\large{Solution:-}}}}$

$\sf{Here,}$

P = 5,400, A = 6,773.76, R% = 12% p.a., n = ?

$\sf{We \: know\: that}$

$\sf{ A = P( 1 + \frac{}{100} ) ^{n} }$

$\sf{6,773.76 = 5,400(1 + \frac{12}{100} {)}^{n} }$

$\sf{\frac{6,773.76}{5,40,000 = (\frac{28}{25})^{n} } }$

$\sf{ ( \frac{28}{25} {)}^{n} = \frac{784}{625} }$

$\sf{( \frac{28}{25} {)}^{n} = ( \frac{28}{25} {)}^{2} }$

$\sf{n = 2}$

Hence, the given sum of 5,400 will amount to 6,773.76 at the 12% in two years.