The compound interest, compounded annually, on Rs.30,000 at 9% per annum is Rs.5,643. The time period (in years) is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. two
the sum = Rs 30000
Rate = 9% p.a.
Compound interest = Rs 5643
Formula used
C.I. = Sum (1 + rate/100)time - Sum
Calculation
⇒ 5643 = 30000 (1 + 9/100)time - 30000
⇒ 35643 = 30000 (1 + 9/100)time
⇒ 35643/30000 = (1 + 9/100)time
⇒ 11881/10000 = (109/100)time
⇒ time = 2 years