A sum amounts to Rs.1210 in 2 years when invested at compound interest. If principal is Rs.1000, then what is the rate of interest (in %)?
Principal = Rs. 1000 and time period = 2 years
Let rate of interest = $$r\%$$
Amount under compound interest = $$P(1+\frac{R}{100})^T$$
=> $$1000(1+\frac{r}{100})^2=1210$$
=> $$(1+\frac{r}{100})^2=\frac{1210}{1000}$$
=> $$1+\frac{r}{100}=\sqrt{1.21}$$
=> $$\frac{r}{100}=1.1-1=0.1$$
=> $$r=0.1\times100=10\%$$
=> Ans - (A)
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