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In how many years will ₹ 2,000 amounts to 2,420 at 10% per annum compound interest?
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- 3 years
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2 1 years 2 - 2 years
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1 1 years 2
Correct Option: C
Given that , P = ₹ 2,000 , A = ₹ 2420 , r = 10%, n = t years
Using the given formula ,
| A = P |  | 1 + |  | n | |
| 100 |
| 2420 = 2000 | | 1 + | | t | |
| 100 |
| = | | | t | ||
| 2000 | 10 |
| ⇒ | | | t | = | ||
| 10 | 100 |
| ⇒ | | | t | = | | | 2 | ||
| 10 | 10 |
∴ t = 2 years
