In how many years will Rs. 2000 may becomes Rs. 2420 at the rate of 10% compound interest per annum.
Answer & explanation
Correct answer: option 3
Principal : Amount
2000 : 2420
100 : 121 ......(i)
Now,
10% = \(\frac{1}{10}\)
Therefore,
Principal : Amount
in 1 year: 10 : 11
in 2 year: 102 : 112
100 : 121 .....(as given in (i))
Hence the time is 2 years.