38.In what time will Rs.1000 become Rs.1331 at 10% per annum compounded annually?
A. 2 years B. 3 years
C. 4 years D. 7 years
Answer:
Principal = Rs.1000;
Amount = Rs.1331;
Rate = Rs.10%p.a.
Let the time be n years.Then
[1000(1+10/100)Λn;]
= 1331.
= (1331/1000)
= (11/10)³
Therefore n = 3 years
