Question

Tals, we werest Deus

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In what time will 5120 amount to 7290 at 12 1/2% per annum compounded annually?
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Answer 1

The time will be "3 years".

Explanation:

The given values are:

Principle,

P = 5120

Amount,

A = 7290

Rate,

r = 12.5

Time,

n = ?

As we know,

⇒
`A = P[1+(r)/(100) ]n`

On substituting the values, we get

⇒
`7290=5120[1+(12.5)/(100) ]n`

On applying cross-multiplication, we get

⇒
`(7290)/(5120)=[1+(125)/(100)* 100 ]n`

⇒
`(9)/(8)* 3=[8+(1)/(8) ]n`

⇒
`n = 3 \ years`