Wednesday, August 8, 2012

if a sum of money grows to 144/121 times when invested for 2 years in a scheme where the interest is compounded annually ,then how long will the...

The principle P becomes 144/121 times in 2 years in a
compound interest annual.


Therefore  P(144/121) =
P(1+r)^2


144/121 = (1+r)^2.


We
take square root.


12/11 =
1+r


12/11 -1 = r


r =
(12-11/)11 = 1/11.


Therefore (100/11)% is the rate of
annual interest.


So for n years the simple interest =
Pnr/100 = Pn (100/11)/100 = Pn/11.


So along wirh principle
and the interest ,the amount  P+Pn/11


If it takes n years
to triple the ampount , 3P = P+Pn/11


3 =
1+n/11


n/11 = 3-1=2


n = 2*11 =
22.


Therefore it takes 22 years for the Principle along
with a simple interest of (100/11)% PA to become 3 times
itself(principle)

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