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A sum amounts to Rs. 2420 in 2 years when invested at compound interest. If principal is Rs. 2000, then what is the rate of interest (in %)?1). 152). 103). 84). 12 |
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Answer» Principal Amount = Rs. 2000 Amount = Rs. 2420 Number of years = 2 Amount = P(1 + R/100)t, where P is the principal, r is the rate of INTEREST and t is the time period 2420 = 2000 (1 + r/100)2 1.21 = 1.0201r2 $(\therefore r = \sqrt {\frac{{1.21}}{{1.0201}}} \approx 10\%)$ |
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