Question

in what time will sum of rs 2500 produce rs 309 at 6% per annum compound interest

Answer 1

Given

Compounded Interest) = A= 306

Duration/Time = n = ?

Rate of Interest Per annum= i = 6%

P = Principal Amount = 2500

we know That..

For compound Interest...

A=P(1+i)^n- P

substituting above information..

309 = 2500(1+6/100)^n -2500

309= 2500(1+0.06)^n - 2500

309= 2500(1.06)^n - 2500

309+2500 = 2500(1.06)^n

2809 = 2500(1.06)^n

2809/2500 = (1.06)^n

1.1236 = (1.06)^n

(1.06)^2 = (1.06)^n

bases are equal..equate the powers..

n = 2

so the time = 2 years