Question 92

At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?

Solution

Let rate of interest = $$r \%$$

Sum under compound interest = Rs. 10,000 and time period = 2 years

=> Amount = $$P (1 + \frac{R}{100})^T = 12,321$$

=> $$10,000 (1 + \frac{r}{100})^2 = 12,321$$

=> $$(1 + \frac{r}{100})^2 = \frac{12321}{10000} = 1.2321$$

=> $$1 + \frac{r}{100} = \sqrt{1.2321} = 1.11$$

=> $$\frac{r}{100} = 1.11 - 1 = 0.11$$

=> $$r = 0.11 \times 100 = 11\%$$

=> Ans - (B)

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