Abdul paid ₹5,832 after some years to a bank. He took ₹5,000 loan at the rate of 8% per annum to be compounded annually. Find the time (in years).
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 2.
We know that,
A = P(1 + R/100)T
here, A = Amount, P = Principle, R = Rate, and T = Time
⇒ 5832 = 5000(1 + 8/100)T
⇒ 5832/5000 = (1 + 2/25)T
⇒ 5832/5000 = (27/25)T
⇒ 2916/2500 = (27/25)T
⇒ (54/50)2 = (27/25)T
⇒ (27 × 2/25 × 2)2 = (27/25)T
⇒ (27/25)2 = (27/25)T
⇒ T = 2 years