Question

In what time will Rs.1000 becomes Rs.1331 at 10% per annum compounded annually?
1. 2 years
2. 3 years
3. 5 years
4. 4 years

Answer 1

Correct Answer - Option 2 : 3 years

Given:

Amount = 1331

Principle = 1000

ROI = 10%

Formula:

Amount = P[1 + (R/100)]ⁿ

Calculations:

Let the required time be n years, Then,

⇒ 1331 = 1000 [1 + (10/100)]ⁿ

⇒ 1331/1000 = (11/10)ⁿ

⇒ (11/10)³ = (11/10)ⁿ

⇒ n = 3 years

∴ Required time period of time is 3 years.