In how much time (in years) would ₹80,000 amount to ₹1,17,128 at 10% per annum rate of interest, compounded yearly?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 4 years
Given that
₹80,000 amounts to ₹1,17,128 at a 10% per annum rate of interest, compounded yearly
As we know that
Amount = Principal × (1 + rate/100)time
⇒ 1,17,128 = 80,000 × (1 + 10/100)time
⇒ 117128/80000 = (11/10)time
⇒ 14641/10000 = (11/10)time
⇒ (11/10)4 = (11/10)time
Time = 4 years