Question : In what time will INR 3,20,000 amount to INR 4,05,000 if compounded at 12.5% per annum?
Option 1: 1 year
Option 2: 2 years
Option 3: 3 years
Option 4: 4 years

Question

Question : In what time will INR 3,20,000 amount to INR 4,05,000 if compounded at 12.5% per annum?

Option 1: 1 year

Option 2: 2 years

Option 3: 3 years

Option 4: 4 years

Team Careers360 · Accepted Answer

Correct Answer: 2 years

Solution : Rate, $R$ = 12.5%
Principal, $P$ = INR 3,20,000
Amount = INR 4,05,000
Let $n$ be the time.
When compounded annually, total amount after $n$ years = $P[(1+\frac{R}{100})^{n}$
$⇒405000=320000[(1+\frac{12.5}{100})^{n}$
$⇒\frac{405000}{320000} = (1+\frac{1}{8})^n$
$⇒\frac{81}{64} = (\frac{9}{8})^n$
$⇒(\frac{9}{8})^2 = (\frac{9}{8})^n$
$⇒n = 2$ years
Hence, the correct answer is 2 years.

Popular Searches

Question : In what time will INR 3,20,000 amount to INR 4,05,000 if compounded at 12.5% per annum?
Option 1: 1 year
Option 2: 2 years
Option 3: 3 years
Option 4: 4 years

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Popular Searches

Question : In what time will INR 3,20,000 amount to INR 4,05,000 if compounded at 12.5% per annum?Option 1: 1 yearOption 2: 2 yearsOption 3: 3 yearsOption 4: 4 years

Related Questions

Question : What is the Compound interest on INR 25,000 for 3 years at 10% per annum compounded yearly?Option 1: INR 8,125Option 2: INR 8,000Option 3: INR 8,200Option 4: INR 8,275

Question : What is the compound interest on INR 62,500 for 2 years at 8% per annum compounded yearly?Option 1: INR 10,500Option 2: INR 10,300Option 3: INR 10,400Option 4: INR 10,600

Question : A certain amount of money was lent for 1 year 9 months at a rate of 10% per annum compounded annually. If the compound interest is INR 1,460, find the amount of money lent.Option 1: INR 8,200Option 2: INR 7,500Option 3: INR 6,000Option 4: INR 8,000

Question : What is the difference between the compound interest on INR 6,400 for 1 year at 5% per annum compounded yearly and half-yearly?Option 1: INR 8Option 2: INR 9Option 3: INR 4Option 4: INR 7

Question : Find the compound interest on INR 50,000 for one year at 8% per annum when compounded half-yearly.Option 1: INR 3,900Option 2: INR 3,880Option 3: INR 4,080Option 4: INR 3,950