SOLUTION: In what time will rupees 1000 becomes Rs. 1331 at 10% rate p.a compound interest.
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Question 1087136: In what time will rupees 1000 becomes Rs. 1331 at 10% rate p.a compound interest.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.
in your problem:
f = 1331
p = 1000
r = .1 per year
n = number of years
the formula becomes:
1331 = 1000 * (1 + .1) ^ n
divide both sides of the equation by 1000 and simplify to get:
1.331 = 1.1 ^ n
take the log of both sides of the equation to get:
log(1.331) = log(1.1 ^ n)
simplify to get log(1.331) = n * log(1.1)
solve for n to get n = log(1.331) / log(1.1) = 3
1000 rupees will become 1331 rupees in 3 years at an interest rate of 10% compounded annually.
in general, log(b^n) = n*log(b)
that's one of the basic properties of logarithms.
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