Question

In what time will Rs, $15,000$ yield Rs. $4965$ as compound interest at $10$% per year compounded annually?

• A. $3$ years
• B. $2$ years
• C. $1$ years
• D. $4$ years

Answer 1

The correct option is A $3$ years

Interest for the first year

$=\frac{1500\times 10\times 1}{100}$

$=$ Rs $1500$

Amount after the first year $=$ Rs $15000+1500$

$=$ Rs $16500$

Interest for the second year

$=$ $\frac{16500\times 10\times 1}{100}$

$=$ Rs $1650$

Amount after the third year

$=$ $\frac{18150\times 10\times 1}{100}$

$=$ Rs $1815$

Final amount $=$ Rs $18150+1815$

$=$ Rs $19965$

Compound interest $=$ Rs $19965-15000$

$=$ Rs $4965$

Required time $=3$ years