alleryIn how many years will Rs.1000 amount to Rs.1331 at 10% per annum compounded annually?
A4
B2
C5
D3
Answer & Solution
Correct answer: D. 3
1. A = P(1 + r)^n, so 1331 = 1000 * (1.10)^n.
2. (1.10)^n = 1.331.
3. Note (1.10)^3 = 1.331 (since 11^3 = 1331).
4. So n = 3 years.
_Source: ICAI BoS Foundation Paper 3, Ch 4 'Math of Finance', p.8 examples_
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