Question 70

At what percent per annum will ₹6000 amounts to ₹7986 in 3 years if the interest is compounded annually?

Solution

Given,

Principal (P) = ₹6000

Amount (A) = ₹7986

Time = 3 yrs

As we know,

$$A\ =\ P\ \left(1+\frac{r}{100}\right)^n$$

$$7986\ =\ 6000\ \left(1+\frac{r}{100}\right)^3$$

By solving we get ,

r = 10%

Hence, Option C is correct.

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