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

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

[A].

2

[B].

2	1
	2

[C].

3

[D].

4

Answer: Option A

Explanation:

Amount = Rs. (30000 + 4347) = Rs. 34347.

Let the time be n years.

Then, 30000		1 +	7		n	= 34347
			100

		107		n	=	34347	=	11449	=		107		2
		100				30000		10000			100

n = 2 years.