Question

The period in which Rs. 2,000 will amount to Rs. 2,420 at 10% per annum compound interest is

• A. 2.5 years
• B. 2 years
• C. 3 years
• D. 3.5 years

Answer 1

Answer: (B)

$P=Rs.2,000,A=Rs.2,420,R=10$%, $N=?$
$2,420=2,000{(1+\frac{10}{100})}^N$
${\left(\frac{11}{10}\right)}^2={\left(\frac{11}{10}\right)}^N$
$\therefore N=2years$