By using the formula, find the amount and compound interest on:
In how many years will Rs. 6250 amount to Rs. 7290 at 8% per annum, compounded annually ?
Given: Principal (P) = Rs. 6250Amount (A) = Rs. 7290Rate (R)= 8% p.a.Let t be the time, then
A=(1+R100)t⇒AP=(1+R100)t⇒72906250=(1+8100)t⇒72906250=(1+225)t⇒ 729625=(2725)t⇒ (2725)2=(2725)tComparing, we gett=2∴ Period =2 years.