Answer:
2.31 Years
Explanation:
To calculate the time it will take for ₹5000 to grow to ₹5618 with a 6% annual interest rate when compounded annually, we can use the following formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (₹5618)
P = the principal amount (₹5000)
r = the annual interest rate (6% or 0.06)
n = the number of times the interest is compounded per year (1, since it's compounded annually)
t = the time period in years
Plugging in the values, we get:
5618 = 5000(1 + 0.06/1)^(1t)
Simplifying:
1.1236 = 1.06^t
Taking the natural logarithm of both sides:
ln(1.1236) = ln(1.06^t)
Using the power rule of logarithms:
ln(1.1236) = t ln(1.06)
Solving for t:
t = ln(1.1236) / ln(1.06)
t ≈ 2.31 years
Therefore, it will take approximately 2.31 years for ₹5000 to grow to ₹5618 at a 6% annual interest rate when compounded annually.