Question

in what time will the sum of 3750 at 20% per annum compounded annually amount to 6480

pls answer soon

Answer 1

u can solve it proportionally.
income                percent
3750                     20
6480                       ?

6480*20 divided by 3750=864/25

Answer 2

Answer:

Using the formula:

$A=P(1+r)^t$          .....[1]

where,

A is the amount after t years.

P is the principal

r is the rate in decimal

t is the number of years.

As per the statement:

sum of 3750 at 20% per annum compounded annually amount to 6480

⇒A = 6480, P = 3750 and r = 20%=  0.2

Substitute these in [1] we have;

$6480=3750(1+0.20)^t$

Divide both sides by 3750 we have;

$1.728 = (1.20)^t$

We can write this 1.728 as:

$1.728 = (1.20)^3$

then;

$(1.20)^3=(1.20)^t$

On comparing both sides we have;

t = 3 years

Therefore, the time is, 3 years