Arithmetic Ability
Compound Interest

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Q.

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

View Answer

Correct choice: C

Explanation:

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