The compound interest, compounded annually, on Rs. 30,000 at 9% per annum is Rs. 5,643. The time period (in years) is:

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SSC GD Constable (2022) Official Paper (Held On : 01 Feb 2023 Shift 2)
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  1. three
  2. Five
  3. two
  4. four

Answer (Detailed Solution Below)

Option 3 : two
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Detailed Solution

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Given:

Principal (P) = Rs. 30,000,

Compound Interest (CI) = Rs. 5,643

Concept:

A = CI + P

A/P = (1 +r/100)n

Solution:

A/P = (1 +r/100)n

⇒ 35643/30000 =  [(1 + 9/100)n

⇒ 11881/10000 =  [(109/100)n

⇒ (109/100)2 =  (109/100)n

⇒ n = 2 years

Hence, the time period is 2 years

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