In how many years will ₹156250 become ₹196830 at 8% compound interest per annum, compounded annually?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 3.
Amount = P(1 + R/100)T
⇒ 196830 = 156250(1 + 8/100)T
⇒ (19683/15625) = (27/25)T
⇒ (27/25)3 = (27/25)T
⇒ T = 3