Compound Interest - Arithmetic Aptitude Questions and Answers

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

2\(\frac { 1 } { 2 } \)

Answer : Option A

Explanation :

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

Let the time be n years.

Then, 30000[1+\(\frac { 7 } { 100 }]^n \)== 34347

\([ \frac { 107 } { 100 }]^n\)=\( \frac { 34347 } { 30000 } \)=\( \frac { 11449 } { 10000 } \)=\([ \frac { 107 } { 100 }]^2\)