Question
In how many years will a sum of Rs 320 amount to Rs 405
if interest is compounded 12.5% yearly?Solution
Let the time period be t years. Amount = P x (1 + r%/100)t 405= 320 x (1 + 12.5/100)t 405/320 = (9/8)t 81/64 = (9/8) 2= (9/8)t t = 2 years
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