Answer: To determine how many months it will take for an initial investment of Rs1000 to grow to Rs1200 at a 10% interest rate, we can use the formula:
Time = (ln(final value / initial value)) / (ln(1 + interest rate))
where ln is the natural logarithm function.
Plugging in the given values:
Time = (ln(1200/1000)) / (ln(1 + 0.10))
Time = (ln(1.2)) / (ln(1.10))
Time = 0.18232 / 0.09531
Time = 1.913 months
It will take approximately 1.913 months for an investment of Rs1000 to grow to Rs1200 at a 10% interest rate.
Explanation: