In how much time will a sum of Rs 1600 amount to Rs 1852.20 at 5%
Question:

In how much time will a sum of Rs 1600 amount to Rs 1852.20 at 5% per annum compound interest?

Solution:

$\mathrm{A}=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$

$1852.20=1600\left(1+\frac{5}{100}\right)^{\mathrm{n}}$

$\frac{1852.20}{1600}=(1.05)^{\mathrm{n}}$

$(1.05)^{\mathrm{n}}=1.157625$

$(1.05)^{\mathrm{n}}=(1.05)^{3}$

On comparing both the sides, we get:

n = 3

Thus, the required time is three years.

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