Multiple choice

In what time will Rs.390625 amount to Rs.456976 at 4 per cent compound interest?

  1. 2 years

  2. 4 years

  3. 3 years

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

Using A = P(1 + r/100)^n, 456976 = 390625(1.04)^n. (1.04)^n = 456976 / 390625 = 1.16985856. Since 1.04^4 = 1.16985856, n = 4.

AI explanation

Using the compound interest formula, we have 390625 multiplied by 1.04 raised to the time t equals 456976. Checking the given options by substituting t = 4 gives 390625 multiplied by 1.04 four times, which results in exactly 456976. Therefore, the required time is 4 years.

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