Multiple choice

In how many years will Rs. 25,000 yield Rs. 8275 as compound interest at 10% per annum compounded annually?

  1. 2

  2. 4

  3. 3

  4. 5
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, where A = 25000 + 8275 = 33275. Then 33275 = 25000(1.1)^n, so 1.331 = (1.1)^n. Since 1.1^3 = 1.331, n = 3.

AI explanation

Using the compound interest amount formula A = P(1 + R/100)^n, the total amount is the principal plus the interest, which is 25000 + 8275 = 33275. We set up the equation 33275 = 25000(1 + 10/100)^n, which simplifies to 1.331 = (1.1)^n. Recognizing 1.331 as the cube of 1.1, we find n is 3 years.

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