Question

In how many years will ₹ 1600 amount to ₹ 1764 at 5% C.I.?

• A. 2 years
• B. 2.5 years
• C. 2 years
• D. 3.5 years

Answer 1

The correct option is A 2 years

Let the time period be n.
Given A = ₹ 1764, P = ₹ 1600 and R = 5%
A = P ( 1+$\frac{R}{100}{)}^n$
1764 = 1600 $(1+\frac{5}{100}{)}^n$
$\frac{1764}{1600}$ = ( 1+$\frac{5}{100}{)}^n$
$\frac{1764}{1600}$ = $(\frac{105}{100}{)}^n$
= $(\frac{21}{20}{)}^n$
$\frac{441}{400}$ = $(\frac{21}{20}{)}^n$
$(\frac{21}{20}{)}^2$ = $(\frac{21}{20}{)}^n$
Hence, n = 2 years.