In how much time would Rs 5000 amount to Rs 6655 at 10%

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.

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