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Examveda

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

A. 2

B. $$2\frac{1}{2}$$

C. 3

D. 4

Answer: Option A

Solution(By Examveda Team)

$$\eqalign{ & {\text{Amount}} = Rs.\,\left( {30000 + 4347} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,34347 \cr & {\text{Let}}\,{\text{the}}\,{\text{time}}\,{\text{be}}\,n\,{\text{years}} \cr & {\text{Then}},30000\,{\left( {1 + \frac{7}{{100}}} \right)^n} = 34347 \cr & \Rightarrow {\left( {\frac{{107}}{{100}}} \right)^n} = \frac{{34347}}{{30000}} = \frac{{11449}}{{10000}} = {\left( {\frac{{107}}{{100}}} \right)^2} \cr & \therefore n = 2\,{\text{years}} \cr} $$

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