Multiple choice

In what time will Rs, $3,000$ yield Rs. $993$ as compound interest at $10$% per year compounded annually?

  1. $3$ years
  2. $2$ years
  3. $1$ years
  4. $4$ years
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A Correct answer
Explanation

The compound interest after 3 years is 3000[(1.1)^3 - 1] = 3000 × 0.331 = 993. Therefore, the required time is 3 years.

AI explanation

Using the compound interest formula CI = P * [(1 + R/100)^T - 1], we substitute the given values to get 993 = 3000 * [(1 + 10/100)^T - 1]. Simplifying this gives 0.331 = (1.1)^T - 1, which results in (1.1)^T = 1.331. Since 1.1 multiplied by itself three times equals 1.331, the time period is 3 years.

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