Question

In what time will 5400 RS amounts to 6773.36 RS at 12%p.a compound interest

Answer 1

We know that

compounded Amount= CA = P((1+i)^n

P = Principal Amount = 5400

i = Rate of interest Per Annum =12%

n = Time =?

6773.76= 5400(1 + 12/100)^n

6773.76/5400 = (1 + 0.12)^n

1.2544 =(1.12)^n

(1.12)^2 = (1.12)^n

bases are equal..equate the powers

n = 2 ; time taken