In how many years ₹4,000 will amount to ₹5,324 at 10 percent per annum compound interest, compounded annually ?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 3
Formula used
Amount = Principal × (1 + rate/100)time
Given that
Principal = 4000 Rs
Amount = 5324 Rs
Rate = 10 % per annum
Time = ?
Calculation
5324 = 4000 × (1 + 10/100)Time
(11/10)time = 5324/4000 = 1331/1000 = (11/10)3
Time = 3 years