In what time will Rs. 1000 become Rs. 1331 at 10% per annum compounded annually?
1 year
4 year
3 year
6 year
Correct Answer :
C. 3 year
Principal = Rs. 1000; Amount = Rs. 1331; Rate = 10% p.a. Let the time be n years.
Then, [ 1000 (1+ (10/100))n ] = 1331 or (11/10)n = (1331/1000) = (11/10)3
n = 3 years.