Question

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4,347. Find the period for which the interest is calculated (in years).

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Answer 1

Amount = Rs. (30,000 + 4,347) = Rs. 34,347

Let the time be n years.

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

⇒ $($ $\frac{107}{100}{)}^n$ = $\frac{34347}{30000}$ = $\frac{11449}{10000}$ = $($ $\frac{107}{100}{)}^2$

∴ n = 2 years.