Multiple choice

In what period will Rs 3,200 amount to Rs 3,528 at 5% per annum compound interest?

  1. 3 years

  2. 4 years

  3. 2 years
  4. $2\frac {1}{2}years$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P(1 + r/100)^n. 3528 = 3200(1 + 0.05)^n. 3528/3200 = (1.05)^n. 1.1025 = (1.05)^n. Since 1.05^2 = 1.1025, n = 2 years.

AI explanation

Using the compound amount formula A = P(1 + r/100)^n, we have 3528 = 3200 * (1 + 5/100)^n. This simplifies to (21/20)^n = 3528 / 3200, which equals 1.1025 or 441/400. Since 441/400 is exactly (21/20)^2, the time period n is 2 years.

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