In how may years will a sum of Rs.320 amount to Rs.405 if interest is compounded at 12.5% per annum?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e 2 years.
| Understanding/Application |
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Principal = Rs . 320 Rate = 12.5% Amount = Rs. 405 Let the time taken be t years. |
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Principal(1 + r/100)t = 405 320(1 + 12.5/100)t = 405 320(112.5/100)t = 405 (1125/1000)t = 405/320 (9/8)t = 81/64 (9/8)t = (9/8)2 t = 2 years |