The compound interest on Rs. 30,000 at 7% per annum is Rs. 4,347. Find the period (in years).

Problem restatementGiven CI and rate, determine t such that P[(1 + r)^t − 1] = CI.

Given data

• P = 30,000; r = 7% = 0.07
• CI = 4,347 ⇒ (1 + r)^t − 1 = 4,347 ÷ 30,000 = 0.1449

Concept/ApproachRecognize the square of 1.07: (1.07)² = 1.1449.

Step-by-step calculation(1.07)^t = 1 + 0.1449 = 1.1449Since (1.07)² = 1.1449, we have t = 2 years

Verification/AlternativeCompute CI directly: 30,000[(1.07)² − 1] = 30,000(0.1449) = 4,347.

Common pitfallsTaking t = 1 (would give only 7%, not 14.49%).

Final Answer2 years