1.

In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.

Answer» GIVEN Principal Amount= P= 700

Rates of interest PER annum= i =10% p.a

Time= N = ?

Compounded amount= 847



We KNOW that

Compound amount = P(1+i)^n

847 =700[ (1+10/100)^n

847 =700[(1 + 0.1)^n

847 =700[ (1.1)^n

847 / 700=(1.1)^n

1.21= (1.1)^n

we can write 1.21 as 1.1 ×1.1 =(1.1)^2

(1.1)^2= (1.1)^n

Bases are equal equate the POWERS
2 = n...it takes 2 years for 700 to become 847 at 10.%p.a


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