Question

In what time will Rs. 1000 amount to Rs. 1331 at 10% per annum, compound interest?

Answer 1

Given, 

Principal = Rs.1000 

Amount = Rs. 1331 

Rate = 10% p.a 

Let time = T years 

So,

\({A}={P}[({1}+\frac{R}{100})^T]\)

\(={1000}[({1}+\frac{10}{100})^T]\) = 1331

\(=(\frac{11}{10})^T\) \(=\frac{1331}{1000}\) \(=(\frac{11}{10})^3\)

= T = 3 years 

Hence, 

Time = 3 years