Question

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

Options

• 2

• `2 1/2`

• 3

• 4

Answer 1

2

Explanation:

Amount = Rs. (30000 + 4347) = Rs. 34347

Let the time be n years.

Then, `30000 (1 + 7/100)^n` = 34347

⇒ `(107/100)^n = 34347/30000 = 11449/10000 = (107/100)^2`

∴ n = 2 years.