In how many years, the compounded annually on a sum of Rs.60,000 at rate of 8% per annum is Rs.9,984?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 2.
As we know the formula
A = P (1 + R/100)T
A = amount, P = principal, R = rate of interest, T = time (in years)
Calculation
A = P + CI = 60000 + 9984 = 69984
69984 = 60000 * (1 + 8/100)T
(27/25)T = 2916/2500 = (27/25)2
T = 2 years