Question 59

At what rate percent per annum will ₹7200 amountto ₹7938 in one year, if interest is compounded half yearly?

Solution

Let the rate of interest per annum = R

According to the problem,

7938 = 7200(1+$$\frac{\frac{R}{2}}{100}$$)$$^2$$

3969 = 3600(1+$$\frac{\frac{R}{2}}{100}$$)$$^2$$

441 = 400(1+$$\frac{\frac{R}{2}}{100}$$)$$^2$$

(1+$$\frac{\frac{R}{2}}{100}$$)$$^2$$ = $$\frac{441}{400}$$

1+$$\frac{\frac{R}{2}}{100}$$ = $$\frac{21}{20}$$

$$\frac{R}{200}$$ = $$\frac{1}{20}$$

R = 10%

Hence, the correct answer is Option D

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