A principal of ₹1,00,000 is invested at 10% per annum compound interest, compounded annually. After how many years will the amount grow to ₹1,21,000?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 2.
Given, amount = 121000
Also, P = 100000 and R = 810%
Let the time period be T.
Amount = P(1 + R/100)T
⇒ 121000 = 100000(1 + 10/100)T
⇒ 121/100 = (11/10)T
⇒ (11/10)2 = (11/10)T
⇒ T = 2