If Rs. 700 is invested at 4% per year, how long will it take for the amount to reach Rs. 784?
Answer: 5 years
Explanation
To find the time it takes for the amount to reach Rs. 784:
Use the formula for compound interest:
A = P(1 + r/n)^(nt)
where A = 784, P = 700, r = 4% = 0.04, n = 1 (compounded annually)
784 = 700(1 + 0.04/1)^(1t)
Divide both sides by 700:
1.1286 ≈ (1.04)^t
Take the logarithm of both sides:
t ≈ log(1.1286) / log(1.04)
≈ 3
So, it will take approximately:
3 years
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