A sum of Rs. 10500 becomes Rs. 17745 in 2 years at the rate of compound interest. If the interest is compounded annually, then what will be the rate of interest?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 30%.
| Understanding/Application |
|
Principal = Rs.10500 Let the rate of interest be R% Time period = 2 years Amount = Rs.17745 [10500 × {(100 + R)/100} × {(100 + R)/100] = 17745 {(100 + R)/10}2 = 169 (100 + R)/10 = 13 100 + R = 130 |
| R = 30% |