# Find out the period

The compound interest on Rs. 60000 at 7% pa is Rs. 8694. Find the period

- 2 year
- 8 year
- 3 year
- 4 year

**Answer: (1) 2 years**

**Explanation:-**

**Given-**

C I = Rs.8694, Principal = Rs.60,000 & R = 7 %.

**Formula-**

**P[(1 + R/100) ^{t} – 1]**

**Where, R = rate, t = time & P = principal.**

Then, 8694 = 60000[(1 + 7/100)

^{t}– 1]

8694/60000 = (107/100)

^{t}– 1

8694/60000 + 1 = (107/100)

^{t }(8694 + 60000)/60000 = (107/100)

^{t }68694/60000 = (107/100)

^{t }11449/10000 = (107/100)

^{t }(107/100)

^{2}= (107/100)

^{t }t = 2 years (comparing on both side)Hence, the answer is (1) 2 years.