Question 52

In what time will ₹8,000 become ₹12,167 at 15% per annum, compounded annually?

Solution

Let's assume the required time is 'n'.

$$Amount = principal\left(1+\frac{rate}{100}\right)^{time}$$

$$12167 = 8000\left(1+\frac{15}{100}\right)^{n}$$

$$12167 = 8000\left(1+\frac{3}{20}\right)^{n}$$

$$\frac{12167}{8000} = \left(\frac{23}{20}\right)^{n}$$

$$(\frac{23}{20})^{3} = \left(\frac{23}{20}\right)^{n}$$

So n = 3 years [by comparing the power of both of the sides]

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