In how many years will ₹ 40000 amount to ₹ 46656 at the rate of 8% compound interest per annum?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 2
Given that
Principal = ₹ 40000
Amounts = ₹ 46656
The rate of 8% compound interest
Formula used
Amount = Principal (1 + Rate/100)Time
Calculation
⇒ 46656 = 40000 (1 + 8/100)Time
⇒ (1 + 8/100)Time = 46656/40000 = 1.1664
⇒ (1.08)Time = 1.1664 = 1.082
⇒ Time = 2 years