What interest rate is required for ₹4000 to amounts to ₹4840 in 2 years with compound interest?
Show answer & explanation
Correct answer: A
Explanation
P=₹4000
A = ₹4840
T = 2 years
A = P(1 + R/100)²
4840 = 4000 (1 + R/100)²
(1 + R/100)² = 4840/4000= 1.21
1 + R/100 = 1.1
R/100 = 0.1
R = 10%