Question

In what time will the sum of $₹1875$ yield a compound interest of $₹477$, at $12\%$ per annum, compounded annually?

• A. 2 years
• B. 1 year
• C. 3 years
• D. $1\frac{1}{2}$ years

Answer 1

Answer: (A)

(i) Use C.I. $=P{\left(1+\frac{R}{100}\right)}^N-P$ and evaluate $N$.
(ii) C.I. = ₹ $477,P=₹1875$ and $R=12\%$, find $n$.