Question

In what time will rs.4000 amount to rs.4410 at 5% per annum compounded anually?

Answer 1

Answer:

Let the time be n years. Then

4410=4000(1+5/100)^n=4000(1.05)^n

(4410/4000)=(1.05)^n

1.1025=(1.05)^n

(1.05)^2=(1.05)^n

n=2

Ans 2 years