Asum of ₹ 11700 becomes ₹ 16848 in 2 years at the rate of compoundinterest. If the interest is compounded annually, then what will be the rate of interest?

Given, Principal = Rs.11700
Amount including Compound Interest = Rs.16848
Time period = 2 years
We know that $$P(1+\dfrac{R}{100})^n = A$$ where P = Principal, A = Amount, R = Rate of interest, n = Time period

$$11700\times(1+\dfrac{R}{100})^2 = 16848$$

=> $$11700 \times (\dfrac{100+R}{100})\times (\dfrac{100+R}{100}) = 16848$$

=> $$(\dfrac{100+R}{10})^2 = 144$$

=> $$\dfrac{100+R}{10} = 12$$

=> $$100+R = 120$$
=> $$R = 20$$
Therefore, Rate of interest = 20%