In how many years Rs. 800 at 4% p.a. compounded annually will amount to Rs. 832?

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In how many years Rs. 800 at 4% p.a. compounded annually will amount to Rs. 832?
1. 1 year 3 months
2. 1 year 6 months
3. 1year 9 months
4. 1 year

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Correct Answer - Option 4 : 1 year

Given:

Principal = Rs. 800

Rate of interest = 4% p.a.

Amount = Rs. 832

Formula Used:

Amount = Principal × (1 + rate of interest/100)Time

Calculation:

(832/800)n = (104/100)Time

⇒ (26/25)1 = (26/25)Time

⇒ Time = 1 year

∴ In 1 year Rs. 800 at 4% p.a. compounded annually will amount to Rs. 832.

The correct option is 4 i.e. 1 year

If am = an

Then m = n