Question

With the help of logarithm find the number of years in which Rs 216 will become Rs 625 at 16% compound interest.

Answer 1

Answer:

7.16 years

Step-by-step explanation:

Since it's not stated otherwise, we will suppose that the 16% is per annum and that compounding happens annually.

Now

A = P × ( 1 + r )ⁿ

where A is the amount, P is the principal, r is the rate per compounding period and n is the number of compounding periods.

So we have

625 = 216 × ( 1 + 0.16 )ⁿ,  where n is the number of years

=> 1.16ⁿ = 625 / 216

=> n log 1.16 = log (625 / 216)

=> n = [ log (625 / 216) ] / [ log 1.16 ]

=> n ≈ 7.16  ( approx)

which is 7 years and 2 months (approx).

Answer 2

Answer:

The answer is 7.15

Step-by-step explanation: