Question 85

At what rate of compound interest (in %) per annum will a sum of Rs. 15,000 become Rs. 18,150 in 2 years?

Solution

Amount received at the end of 2nd yr = P$$(1+\frac{R}{100})^{2}$$

18150 = 15000$$(1+\frac{R}{100})^{2}$$

1.21 = $$(1+\frac{R}{100})^{2}$$

1.1 = $$1+\frac{R}{100}$$

0.1 =$$\frac{R}{100}$$

$$R = 10$$%

So the answer is option B.

Create a FREE account and get: