Question

The time in which rs.6250 will amount to rs. 6760 at 4 p.c compound interest

Answer 1

Suppose the required time is t years.
Principal amount; P = Rs.8800
Amount accumulated after t years = Rs.10648
Rate, r = 10%
So, amount accumulated after t years = P(1+r100)t = 8800(1+10100)t
⇒10648 = 8800(1+0.1)t⇒10648 = 8800(1.1)t⇒106488800 = (1.1)t⇒1.21 = (1.1)t⇒(1.1)^2 = (1.1)t = 2
Therefore, required time is 2 years.