Maths-
General
Easy

Question

In what time will Rs1500 yield  Rs1996.50 as compound interest at 10% per annum compounded annually?
 

Hint:

Use the formula of total amount  to find the number of years.

The correct answer is: 3 years


    Complete step by step solution:
    We calculate the total amount by the formula A equals P open parentheses 1 plus R over 100 close parentheses to the power of T…(i)
    where P is Principal amount, T is number of years and R is rate of interest
    Here, we have R = 10% ,P = 1500 , A = 1996.5 and T = ?
    On substituting the known values in (i), we get 1996.5 equals 1500 open parentheses 1 plus 10 over 100 close parentheses to the power of T
    On dividing both the sides by 1500, we have fraction numerator 1996.5 over denominator 1500 end fraction equals open parentheses 110 over 100 close parentheses to the power of T
    not stretchy rightwards double arrow open parentheses 11 over 10 close parentheses cubed equals open parentheses 11 over 10 close parentheses to the power of T
    rightwards double arrowT = 3 years
    In 3 years will Rs 1500 yield Rs 1996.50 as compound interest at 10% per annum compounded annually.

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