A sum of ₹ 10500 becomes ₹ 17745 in 2 years at the rate of compound interest. If the interest is compounded annually, then what will be the rate of interest?
Given, Principal = Rs.10500
Let the rate of interest be R%
Time period = 2 years
Amount = Rs.17745
$$10500\times\dfrac{100+R}{100}\times\dfrac{100+R}{100} = Rs.17745$$
=> $$(\dfrac{100+R}{10})^2 = 169$$
=> $$\dfrac{100+R}{10} = 13$$
=> $$100+R = 130 => R = 30$$
Therefore, Rate of interest = 30%
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