At what rate percent per annum will Rs7200 amount to Rs7938 in one year, if interest is compounded half yearly?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 10
A = P(1 + r/100)n.
7938 = 7200(1 + r/100)2
7938/7000 = (1 + r/100)2
63/60 = 1 + r/100
3/60 × 100 = r
r = 5%.
Rate per annum = 5 × 2 = 10%.