Answer:
The period is 2.6 year.
Step-by-step explanation:
Given : Principal P=Rs.2550
Annual rate of interest r=17.5%=0.175
Total amount A=Rs.3888.75
To 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.
