Question

A principal of ₹1,00,000 is invested at 10 % per annum compound interest, compounded annually. After how many years will the amount grow to ₹1,33,100?

• A. 3
• B. 4
• C. 5
• D. 6

Answer 1

Answer:

A. 3

We use the compound interest formula:

$A = P(1 + r)^n$
]

Where:

• (A = 1,33,100)

• (P = 1,00,000)

• (r = 10% = 0.1)

• (n = ?)

  Step 1: Substitute values

$1,33,100 = 1,00,000(1.1)^n$

Divide both sides by 1,00,000:

$1.331 = (1.1)^n$

Step 2: Recognize power of 1.1

$1.1^1 = 1.1$
$1.1^2 = 1.21$
$1.1^3 = 1.331$

So,
$(1.1)^3 = 1.331$

Final Answer: 3 years