At what rate of compound interest per annum will a sum of ₹1200 become ₹1348.32 in 2 years ?
Principal sum = Rs. 1200 and amount after 2 years = Rs. 1348.32
Let rate of interest = $$r\%$$
Amount when interest is compounded annually = $$P(1+\frac{R}{100})^T$$
=> $$1200(1+\frac{r}{100})^2=1348.32$$
=> $$(1+\frac{r}{100})^2=\frac{1348.32}{1200}$$
=> $$(1+\frac{r}{100})^2=1.1236$$
=> $$(1+\frac{r}{100})=\sqrt{1.1236}=1.06$$
=> $$\frac{r}{100}=1.06-1=0.06$$
=> $$r=0.06\times100=6\%$$
=> Ans - (C)
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