In what time will Rs. 1000 become Rs. 1331 at 10% per annum compounded annually?

A. 1 year

B. 4 year

C. 3 year

D. 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}