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An investment of Rs.5000 grows to Rs.6000 in 2 years. What is the annual interest rate compounded annually?
  • a)
    10%   
  • b)
    12%   
  • c)
    15%   
  • d)
    20%
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
An investment of Rs.5000 grows to Rs.6000 in 2 years. What is the annu...
Use the formula for compound interest: A = P(1 + r)^n. Solving for r, we get: r = ((A/P)^(1/n) - 1) * 100 = ((6000/5000)^(1/2) - 1) * 100 ≈ 10%.
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An investment of Rs.5000 grows to Rs.6000 in 2 years. What is the annual interest rate compounded annually?a)10%b)12%c)15%d)20%Correct answer is option 'A'. Can you explain this answer?
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