Multiple choice

In how many years, will the compound interest on Rs. $1000$ at the rate of $10\%$ p.a. be Rs.$210$

  1. $1$ year
  2. $1.5$ years
  3. $2$ years
  4. $2.5$ years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For compound interest, the formula is A = P(1 + r/100)^n. Here, 1210 = 1000(1 + 10/100)^n, which simplifies to 1.21 = (1.1)^n. Since 1.1^2 = 1.21, n = 2 years.

AI explanation

Using the compound interest formula, the final amount equals the principal plus the interest, giving 1000 plus 210 for a total of 1210. The formula gives 1210 equals 1000 multiplied by (1 + 10/100) raised to the time N. Simplifying this results in 1.21 equals 1.1 raised to N, and since 1.1 squared is 1.21, the required time is 2 years.

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