Question

Azhar deposits ₹20,000 in a bank. In how many years will it amount to ₹23,000 at the rate of interest 5% p.a ?​

Answer 1

23 years is the correct answer

Answer 2

Step-by-step explanation:

Given, principal Amount (P) = Rs. 20000

Rate of Interest Amount (r) =5%=0.05

Number of Period (t) =2 years

Compounded Interest (n) =1 (yearly)

Maturity value = P×(1+

n

r

)

nt

= 20000×(1+

1

0.05

)

2

= Rs. 22050