Correct Answer - Option 1 : 2 years

**Given**

Amount = Rs.6760

Rate = 4% per annum

Principal = Rs.6250

**Formula used**

Amount = Principal (1 + r%)^{t}

Where r and t are rate and time respectively

**Calculation**

6760 = 6250 × [ 1 + (4/100)]t

⇒ 6760/6250 = [ 1 + (4/100)]^{t}

⇒ (26/25)^{2} = (104/100)^{t}

⇒ (26/25)^{2} = (26/25)^{t}

⇒ t = 2

∴ **Time is 2 years**