Question

At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

पर्याय

• 6%

• 6.5%

• 7%

• 7.5%

Answer 1

6%

Explanation:

Let the rate be R% p.a.

Then, 1200 x = `(1 + R/100)^2` = 1348.32 

⇒ `(1 + R/100)^2 = 134832/120000 = 11236/10000`

∴ `(1 + R/100)^2 = (106/100)^2`

⇒ `1 + R/100 = 106/100`

⇒ R = 6%