Multiple choice

Rakesh wants to invest Rs. 1,00,000 in a bank that offers 10% compound interest annually. How many years will it take for his investment to grow to Rs. 1,33,100?

  1. 2

  2. 3

  3. 4

  4. 5

  5. 6
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using the formula A = P(1 + r/100)^n, we have 133100 = 100000(1 + 10/100)^n. This simplifies to 1.331 = (1.1)^n. Since 1.1^3 = 1.331, n = 3.

AI explanation

Using the compound interest growth formula, the final amount equals the principal multiplied by 1.10 raised to the number of years. Dividing the final amount of 1,33,100 by the principal of 1,00,000 leaves a factor of 1.331. This factor matches 1.10 raised to the power of 3, so it will take 3 years.

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