Multiple choice

The number of years in which a sum of rs 20000 amount to rs 23152.50 at 5% annual compound interest rate is

  1. 3

  2. 2

  3. 1

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

Using the compound interest formula A = P(1 + r/100)^n, we have 23152.50 = 20000(1 + 0.05)^n. Dividing gives 1.157625 = (1.05)^n, which holds for n = 3 since 1.05^3 = 1.157625.

AI explanation

Using the compound interest formula A = P × (1 + R/100)^N, we substitute the values to get 23152.50 = 20000 × (1 + 5/100)^N. This simplifies to 1.157625 = (1.05)^N. Recognizing that 1.05 multiplied by itself three times equals 1.157625, the number of years is 3.

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