Question

The compound interest on Rs. 25000 at 10% per annum is Rs. 5250. The period (in years) is:

• A. 1
• B. 2
• C. 3
• D. 4

Answer 1

The correct option is B

2

Amount = Rs. (2500 + 5250) = Rs. 30250.
Let the time be n years.
$\Rightarrow 30250=25000\times {(1+\frac{10}{100})}^n$
$\Rightarrow {\left(\frac{110}{100}\right)}^n=\frac{30250}{25000}=\frac{12100}{10000}$
$\Rightarrow {\left(\frac{110}{100}\right)}^n={\left(\frac{110}{100}\right)}^2$
$\Rightarrow n=2$