Question 31

What will be the ratio of amount and the principal in n years at 5% p.a. rate of compound interest ?

Solution

amount of compound interest=A=P(1 + r/100)$$^{t}$$ where P=Principal,r=rate of interest and t=time

∴ A/P=(1 + .05)$$^{n}$$

=(21/20)$$^{n}$$


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