Question

In how many years will the compound interest on Rs. $32000$ at the rate of $5\%$ per annum, be Rs. $5044$?

Answer 1

Given, $P=Rs.32000$
$C.I.=Rs.5044$

$A=P+C.I.=32000+5044=Rs.37044$

Where, $P=$ principal

$C.I=$ compound interest

$A=$ amount

$R=$ rate of interest

On interest being compounded for $N$ years,

$\Rightarrow A=P{(1+\frac{R}{100})}^N$

$\Rightarrow 37044=32000\times {(1+\frac{5}{100})}^N$

$\Rightarrow \frac{37044}{32000}={\left(\frac{21}{20}\right)}^N$

$\Rightarrow \frac{9261}{8000}={\left(\frac{21}{20}\right)}^N$

$\Rightarrow \frac{{21}^3}{{20}^3}={\left(\frac{21}{20}\right)}^N$

$\Rightarrow N=3$ years