Question

If the compound interest earned on ₹30000 at 7% per annum is ₹4347, then find the time period (in years).

• A. 2
• B. $2\frac{1}{2}$
• C. 3
• D. 4

Answer 1

The correct option is A

2

$\text{Given:}P=₹30000,R=7\%p.a.,C.I=₹4347$

$\text{To find: Number of years(n).}$

$\text{Amount (A) =}$₹30000 + ₹4347
= ₹34347

$\text{We know that}A=P(1+\frac{R}{100}{)}^n$

$\therefore 34347=30000{(1+\frac{7}{100})}^n$

$\Rightarrow {\left(\frac{107}{100}\right)}^n=\frac{34347}{30000}=\frac{11449}{10000}$

$\Rightarrow {\left(\frac{107}{100}\right)}^n={\left(\frac{107}{100}\right)}^2\Rightarrow n=2$

Hence, the number of years is 2.