1.

At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?1). 22 percent2). 11 percent3). 7 percent4). 15 percent

Answer»

A = P[1 + (R/100)]n, where A = AMOUNT after ADDING compound Interest, R = rate of interest and n = NUMBER of years

⇒ 12321 = 10000[1 + (R/100)]2

⇒ (111/100)2 = [1 + (R/100)]2

⇒ [1 + (11/100)]2 = [1 + (R/100)]2

⇒ R = 11%

∴ Rate of compound interest = 11%



Discussion

No Comment Found