Rs. 800 at 5% per annum compounds intere

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

Rs. 800 at 5% per annum compounds interest amount to 882 in?

Options:

4 years

8 years

6 years

2 years

Correct Answer:

2 years

Explanation:

In compound interest,

Amount = Principal × ( 1 + \(\frac{R}{100}\) )n

882 = 800 × ( 1 + \(\frac{5}{100}\) )t

\(\frac{441}{400}\) = ( \(\frac{21}{20}\) )t

( \(\frac{21}{20}\) )² = ( \(\frac{21}{20}\) )t

So, t = 2

The correct answer is Option (4) → 2 years