Question 47

The compound interest on Rs. 30,000 at 7%per annum for n years is Rs. 4347. The value of n is

Solution

let A= amount P =principal r = rate of interest n = time

$$A = P(1+\frac{r}{100})^n$$

A after n years = 30000+4347 = 34347

P = 30000

r = 7%

$$34347 = 30000(1+\frac{7}{100})^n$$

$$\frac{34347}{30000} = (\frac{107}{100})^n$$

$$\frac{11449}{10000} =(\frac{107}{100})^n$$ ($$107^2 = 11449$$)

n = 2 years

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