Question

In what year, the rate of 5000 rupees will be 665.50 rupees per 10% annual compound interest rate ?

Find 4% annual compound interest and compounds for 20 years in 500 years?

Answer 1

Answered is .

.

.

10342

Answer 2

Answer: 1) Time = 1.31 years

2) Amount = 1.2 × 10¹⁰

Step-by-step explanation:

Since we have given that

Principal amount = RS. 5000

Interest = Rs. 665.50

Rate of compound interest = 10%

As we know the formula for "Compound Interest ":

$I=P[(1+\frac{r}{100})^n-1]\\\\665.50=5000[(1+\frac{10}{100})^n-1)\\\\\frac{665.50}{5000}=1.1^n-1\\\\0.1331+1=1.1^n\\\\1.1331=1.1^n\\\\\text{Taking logarithm on both sides, we get}\\\\\log 1.1331=n\log 1.1\\\\\frac{\log 1.1331}{\log 1.1}=n\\\\n=1.31 \ years$

Hence, it takes 1.31 years to get a compound interest of Rs. 665.50.

If Principal = 5000

Time = 20 years in 500 years

so, Period = $\frac{500}{20}=25$

Rate of interest = 4% annual compound interest

So, Rate of interest in 20 years = 80%

So, Amount will be

$A=p(1+\frac{r}{100})^n\\\\A=5000(1+\frac{80}{100})^{25}\\\\A=1.2\times 10^{10}$