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.