Q.
Find the time period when 6250 yields an
amount of 7873.20 at 8% per annum
compounded anually.
Answers
Answer:
Step-by-step explanation:Following is the formula for calculating compound interest when time period is specified in years and interest rate in % per annum.
A = P(1+r/n)nt
CI = A-P
Where,
CI = Compounded interest
A = Final amount
P = Principal
t = Time period in years
n = Number of compounding periods per year
r = Interest rate
Calculation Examples
You can solve for any variable by rearranging the compound interest formula as illustrated in the following examples:-
1. What is the compound interest of 75000 at 7.9% per annum compounded semi-annually in 3 years?
Ans. A = P(1+r/n)nt = 75000(1 + (7.9 / 100) / 2)6 = 94625.51
Interest = 94625.51 - 75000 = 19625.51
2. In how many years will a amount double itself at 10% interest rate compounded quarterly?
Ans. t = (log(A/P) / log(1+r/n)) / n = log(2) / log(1 + 0.1 / 4) / 4 = 7.02 years
3. If interest is compounded daily, find the rate at which an amount doubles itself in 5 years?
Ans. r = ((A/P)1/nt - 1) × n = (21/(365×5) - 1) × 365 = 0.13865 = 13.87% per annum
4. What is the present value of 500 to be paid in two years if the interest rate is 5 percent compounded annually?
Ans. P = A/(1+r/n)nt = 500/(1+5/100)2 = 453.51
Answer:
3 years
Step-by-step explanation:
7873.20=6250(1+8/100)n
7873.20=6250(1+2/25)n
7873.20/6250=(27/25)n
(27/25)³=(27/25)n
your answer is 3 years