In what time Rs 800 amount to Rs 882 at 5% p.a. compounded annually?
In what time Rs 800 amount to Rs 882 at 5% p.a. compounded annually?
Explanation
Principal amount (P) = Rs. 800
Rate of interest (R) = 5% per annum
Compound interest (CI) = Rs. 882 - Rs. 800 = Rs. 82
Using the compound interest formula:
A = P (1 + R/100)^n
where A is the amount after n years, we can plug in the values:
882 = 800 (1 + 5/100)^n
Simplifying the equation:
(1.05)^n = 882/800
(1.05)^n = 1.1025
Now, taking the logarithm of both sides (base 1.05):
n = log1.05(1.1025)
n ≈ 2
So, it will take approximately 2 years for Rs. 800 to amount to Rs. 882 at 5% p.a. compounded annually.