In what time will Rs.1000 become Rs.1331 at 10% per annum compounded annually?

Q: In what time will Rs.1000 become Rs.1331 at 10% per annum compounded annually?

Principal = Rs.1000; Amount = Rs.1331; Rate = Rs.10%p.a. Let the time be n years.Then [1000(1+10/100)Λn;] = 1331. = (1331/1000) = (11/10)³ Therefore n = 3 years.

2years
3years
4years
5years

Correct Answer: 3years

Explanation:

Principal = Rs.1000;

Amount = Rs.1331;

Rate = Rs.10%p.a.

Let the time be n years.Then

[1000(1+10/100)Λn;]

= 1331.

= (1331/1000)

= (11/10)³

Therefore n = 3 years.

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