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: B

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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