The compound interest on ₹20,000 at 8% per annum is ₹3,328. The period in years is :

Correct option is B

Given:

Principal (P) = ₹20,000

Rate (R) = 8% per annum

Compound Interest (CI) = ₹3,328

We are to find the time (T) in years

Formula Used:
Compound Interest formula:

CI = A − P,

where A = $$P\left(1 + \frac{R}{100}\right)^T$$​​

Solution:

A = P + CI = 20000 + 3328 = ₹23,328

Now,

​$$23328 = 20000 \left(1 + \frac{8}{100}\right)^T \\ \ \\ \frac{23328}{20000} = \left(\frac{108}{100}\right)^T \\ \ \\\frac{11664}{10000} = \left(\frac{108}{100}\right)^T \\ \ \\ \left(\frac{108}{100}\right)^2 = \left(\frac{108}{100}\right)^T\\ \ \\ \implies T = 2 \ years$$​​