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Mathematics

In what time will ₹15625 amount to ₹17576 at 4% per annum compound interest?

Compound Interest

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Answer

Let the time be n years.

A=P(1+r100)n.A = P\Big(1 + \dfrac{r}{100}\Big)^n.

Substituting values we get,

17576=15625(1+4100)n17576=15625(104100)n1757615625=(2625)n(2625)3=(2625)nn=3 years.\Rightarrow 17576 = 15625\Big(1 + \dfrac{4}{100}\Big)^n \\[1em] \Rightarrow 17576 = 15625\Big(\dfrac{104}{100}\Big)^n \\[1em] \Rightarrow \dfrac{17576}{15625} = \Big(\dfrac{26}{25}\Big)^n \\[1em] \Rightarrow \Big(\dfrac{26}{25}\Big)^3 = \Big(\dfrac{26}{25}\Big)^n \\[1em] \Rightarrow n = 3 \text{ years}.

Hence, ₹15625 will amount to ₹17576 in 3 years at 4% per annum compound interest.

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