Question

In how many years does Rs 2000 amount to Rs 2420 at 10% p.a compound interest?

Answer 1

2 years

Explanation:

Given

Principle = Rs. 2000

Rate of Interest = 10%

Amount = Rs. 2420

Formula used = P(1+R/100)^T

=> 2420 = 2000 ( 1+10/100)^T

• by taking LCM of underlined equation.

=> 2420 = 2000 (10+1/10)^T

=> 2420 = 2000 (11/10)^T

=> 2420/2000 = (11/10)^T

=> 121/100 = (11/10)^T

• 121 = 11²
• 100 = 10²

=> 11/10 = (11/10)^T

=> 2 years.