The compound interest on Rs.4,000 at the rate of 5% p.a. is Rs.630.50, then the time period is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 3 years
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Understanding Tricks |
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Application P = 4000 and CI = 630.50 So A = 4000 + 630.50 = 4630.50 |
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Now We know A = P( 1 + r/100)t ⇒ 4630.50 = 4000(1 + 5/100)t ⇒ 4630.50/4000 = (1 + 1/20)t ⇒ 463050/400000 = (21/20)t ⇒ 46305/40000 = (21/20)t ⇒ 9261/8000 = (21/20)t ⇒ (21/20)3 = (21/20)t |
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Hence Time = 3 years |