Multiple choice

In how many years Rs.1,00,000 will be Rs. 1,33,100 at compound interest rate of 10% per annum?

  1. 4

  2. 5

  3. 3

  4. 2
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^t, where P=100000, A=133100, r=10%. Then (1.1)^t = 133100/100000 = 1.331. Checking powers: 1.1^1 = 1.1, 1.1^2 = 1.21, 1.1^3 = 1.331. Therefore t = 3 years. Option A (4) would give 1.4641, and Option B (5) would give 1.61051.

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