In how many years, the compound interest, if compounded annually on a sum of ₹60,000 at rate of 8% per annum is ₹9,984?
Answer & explanation
Correct answer: option 4
Given :-
Principal = Rs. 60000
Compound interest = Rs.9984
Rate = 8%
The formula that we used here is :-
Amount = Principal + Interest
Amount = P$(1 \;+\; \frac{R}{100})^t$
( 60000 + 9984 ) = 60000$(1 \;+\; \frac{8}{100})^t$
\(\frac{69984}{60000}\) = ( \(\frac{108}{100}\) )t
\(\frac{11664}{10000}\) = ( \(\frac{108}{100}\) )t
(\(\frac{108}{100}\))² = ( \(\frac{108}{100}\) )t
So, t = 2 years