At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
6%
6.5%
7%
7.5%
Explanation:
Let the rate be R% p.a.
| Then, 1200 $ \times\left(1 +\dfrac{R}{100} \right)^2$= 1348.32 |
| $\Rightarrow \left(1 +\dfrac{R}{100} \right)^2$=$ \dfrac{134832}{120000} $=$ \dfrac{11236}{10000} $ |
| $\therefore \left(1 +\dfrac{R}{100} \right)^2$=$ \left(\dfrac{106}{100} \right)^2$ |
| $\Rightarrow$ 1 +$ \dfrac{R}{100} $=$ \dfrac{106}{100} $ |
$\Rightarrow$ R = 6%