An amount of Rs. 8000 grows to Rs. 9261 at a compound interest rate of 5% per annum. How many years does it take for this growth?

Explanation

Using the compound interest formula: Amount = Principal × (1 + rate)^time, we have 9261 = 8000 × (1.05)^N. Simplifying, (1.05)^N = 9261/8000 = 1.157625. Since (1.05)^3 = 1.157625, the time period N is 3 years.