Question

    After how many years, Rs. 4400 will become 5324 at the rate of 10% p.a., compounded annually?

    A 2.5 years Correct Answer Incorrect Answer
    B 5 years Correct Answer Incorrect Answer
    C 2 years Correct Answer Incorrect Answer
    D 3 years Correct Answer Incorrect Answer

    Solution

    Let number of years be ‘n’ years So, 5324 = 4400(1 + 10/100)n Or, 5324/4400 = (11/10)n (11/10)2 = (11/10)n Number of years = ‘n’ = 2 years

    Practice Next

    Relevant for Exams: