Question

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is

• A. 1
• B. 2
• C. 3
• D. 4

Answer 1

The correct option is B

2

Amount = Rs. (30000 + 4347) = Rs. 34347.
Let the time be b years.
$\Rightarrow 34347=30000\times {(1+\frac{7}{100})}^n$
$\Rightarrow {\left(\frac{107}{100}\right)}^n=\frac{34347}{30000}=\frac{11449}{10000}$
$\Rightarrow {\left(\frac{107}{100}\right)}^n={\left(\frac{107}{100}\right)}^2$
$\Rightarrow n=2$