Find the period.Principal = 2550=2550equals, 2550 rupeesAnnual rate of interest = 17.5 \%=17.5%equals, 17, point, 5, percentTotal amount = 3888.75=3888.75equals, 3888, point, 75 rupeesPeriod ==equals years
Accepted Solution
A:
Answer:The period is 2.6 year.Step-by-step explanation:Given : Principal P=Rs.2550Annual rate of interest r=17.5%=0.175Total amount A=Rs.3888.75To find : The period ?Solution : Applying compound interest formula,[tex]A=P(1+r)^t[/tex]Substitute the values given,[tex]3888.75=2550(1+0.175)^t[/tex][tex]\frac{3888.75}{2550}=(1.175)^t[/tex][tex]1.525=(1.175)^t[/tex]Taking log both side,[tex]\log (1.525)=\log (1.175)^t[/tex][tex]\log(1.525)=t\log(1.175)[/tex][tex]t=\frac{\log(1.525)}{\log(1.175)}[/tex][tex]t=2.61[/tex]Approximately the period is 2.6 year.