Question

Find the period.

Principal = 2550=2550equals, 2550 rupees

Annual rate of interest = 17.5 \%=17.5%equals, 17, point, 5, percent

Total amount = 3888.75=3888.75equals, 3888, point, 75 rupees

Period ==equals

years

Answer 1

The answer is 3 years

Answer 2

The period is 2.6 year.

Explanation:

Given : Principal P=Rs.2550

Annual rate of interest r=17.5%=0.175

Total amount A=Rs.3888.75

To find : The period ?

Solution :

Applying compound interest formula,

`A=P(1+r)^t`

Substitute the values given,

`3888.75=2550(1+0.175)^t`

`(3888.75)/(2550)=(1.175)^t`

`1.525=(1.175)^t`

Taking log both side,

`\log (1.525)=\log (1.175)^t`

`\log(1.525)=t\log(1.175)`

`t=(\log(1.525))/(\log(1.175))`

`t=2.61`

Approximately the period is 2.6 year.