Question 150

A certain amount grows at an annual interest rate of 12%, compounded monthly. Which of the following equations can be solved to find the number of years, y, that it would take for the investment to increase by a factor of 64 ?

Solution

Rate of interest = 12% p.a. = 1% per month

Time = $$12y$$ months

Let principal = Re 1 and thus amount = Rs. 64

$$\therefore$$ $$A=P(1+\frac{R}{100})^T$$

=> $$64=1(1+\frac{1}{100})^{12y}$$

=> $$64=(1.01)^{12y}$$

=> Ans - (A)

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