Question:
In how much time would Rs 5000 amount to Rs 6655 at 10% per annum compound interest?
Solution:
Let the time period be $n$ years.
Thus, we have :
$\mathrm{CI}=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}-\mathrm{P}$
$6,655=5,000\left(1+\frac{10}{100}\right)^{\mathrm{n}}-5,000$
$11,655=5,000(1 \cdot 10)^{\mathrm{n}}$
$(1.1)^{\mathrm{n}}=\frac{11,655}{5,000}$
$(1.1)^{\mathrm{n}}=2.331$
$(1.1)^{\mathrm{n}}=(1.1)^{3}$
On comparing both the sides, we get:
n =3
Thus, the required time is three years.