Madhya Pradesh Police Exam Model Paper 7

Question : 79 of 100

Marks: +1, -0

In what time Rs. 2000 will become Rs. 2420 at 10% per annum compounded annually?

Solution:

Given:
The sum of money is Rs. 2000 which becomes Rs. 2420 at 10% per annum
Formula used:
Amount

= p × (1 + r{/}100)^n

Calculation:
Let the time period be t
Amount

= p × (1 + r{/}100)^n

⇒ 2420 = 2000 × (1 + 10{/}100)^t

⇒ 2420{/}2000 = (11{/}10)^t

⇒ (121{/}100) = (11{/}10)^t

⇒ (11{/}10) ^2 = (11{/}10)^t

⇒ t = 2 years
∴ The time is 2 years.

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