Question

If the compound interest earned on ₹30,000 at 7% per annum is ₹4,347, then find the time period (in years).

Answer 1

$\text{Given:}P=₹30,000,R=7\%p.a.,C.I=₹4,347$

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

$\text{Amount (A) =}$₹30,000 + ₹4,347
= ₹34,347

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

$\therefore 34,347=30,000{(1+\frac{7}{100})}^n$

$\Rightarrow {\left(\frac{107}{100}\right)}^n=\frac{34,347}{30,000}=\frac{11,449}{10,000}$

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

Hence, the number of years is 2.