In what time wile Rs8,000 become Rs12,167 at 15% per annum, compounded annually?
This questions was previously asked in
SSC MTS 11th October 2021 Shift-3
Explanation:
To find out in how many years Rs8,000 becomes Rs12,167 at 15% per annum, compounded annually, we use the compound interest formula:
\[ A = P(1 + r/n)^{nt} \]
Where:
- \( A \) is the final amount (Rs12,167)
- \( P \) is the principal amount (Rs8,000)
- \( r \) is the rate of interest (15% or 0.15)
- \( n \) is the number of times interest is compounded per year (1 for annually)
- \( t \) is the time in years
- Calculate \( t \):
- Plug the values: \( 12,167 = 8,000(1 + 0.15)^t \)
- Simplify to find \( t \): \( 1.521 = (1.15)^t \)
- By trial, when \( t = 3 \), \( (1.15)^3 = 1.520875 \) (approximately 1.521)
- Option:1, 3 years
- Option:2, 2 years
- Option:3, 5 years
- Option:4, 4 years
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