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At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
  • a)
    6%
  • b)
    6.5%
  • c)
    7%
  • d)
    7.5%
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
At what rate of compound interest per annum will a sum of Rs. 1200 bec...
Principal = Rs. 1200
Amount = Rs. 1348.32
Time period = 2 years
Let the rate of interest = x%
We know, Amount = Principal (1 + Rate/100)n
⇒ 1348.32 = 1200 (1 + x/100)2
⇒ (106/100)2 = (1 + x/100)2
⇒ 106/100 = 1 + x/100
⇒ x = 6%
∴ The rate should be 6%
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At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?a)6%b)6.5%c)7%d)7.5%Correct answer is option 'A'. Can you explain this answer?
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