Question:
In what time will Rs 1000 amount to Rs 1331 at 10% per annum, compound interest?
Solution:
Let the time be $\mathrm{n}$ years.
Then,
$\mathrm{A}=\mathrm{P}\left(1+\frac{10}{100}\right)^{\mathrm{n}}$
$1,331=1,000\left(1+\frac{10}{100}\right)^{\mathrm{n}}$
$(1.1)^{\mathrm{n}}=\frac{1,331}{1,000}$
$(1.1)^{\mathrm{n}}=1.331$
$(1.1)^{\mathrm{n}}=(1.1)^{3}$
On comparing both the sides, we get:
n = 3
Thus, the required time is three years.