Multiple choice

Srija makes a fixed deposit of 125000 with a bank. The bank pays interest at 8% per annum compounded annually and she received 157464 at the time maturity. Find the time period for which she held account

  1. 1

  2. 2

  3. 3

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

Using the compound interest formula A = P(1 + r/100)^n, 157464 = 125000(1 + 0.08)^n. 157464 / 125000 = 1.259712. Since 1.08^3 = 1.259712, n = 3.

AI explanation

Using the compound interest formula A = P * (1 + R / 100)^n, we substitute the values to get 157464 = 125000 * (1 + 8 / 100)^n. This simplifies to (1.08)^n = 157464 / 125000, which equals 1.259712. Taking the cube root of both sides gives 1.08, meaning n = 3 years.

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