Multiple choice

In how many years will Rs. 8000 amount to Rs. 9261 at 5% per annum compound interest?

  1. 4 years

  2. 3years

  3. 2.5 years

  4. 5 years

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

Principal = Rs. 8000, Amount = Rs. 9261 Rate = 5% per annumLet the time be n years, Then , 9261 = 8000 (1+r/100)n => 9261/8000 = (1+5/100)n = (21/20)n => 441/400 = (21/20)n => (21/20)3 = (21/20)n => n = 3 years

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