Discussion of Question with ID = 092 under Compound-Interest

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Question

The amount of Rs. 2000000 earns an interest of Rs. 590058 @9% compounded annually. What is the investment period in years?

A

3 years.

B

2 years.

C

1 year.

D

1/2 year.

Soln.
Ans: a

The amount is 2000000 + 590058. So 2590058 = 2000000 × $(109/100)^n$. So $2590058/2000000$ = $(109/100)^n$, which can be put in the form $(109/100)^3$ = $(109/100)^3$, so n = 3 years.


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