[6%] At what rate of compound interest per annum will a sum of Rs. 1400 become Rs. 1573.04 in 2 years?

For Competitive Exams

At what rate of compound interest per annum will a sum of Rs. 1400 become Rs. 1573.04 in 2 years?

Explanation:

Let the rate be R% per annum

$ P\left(1 + \dfrac{R}{100}\right)^T $= 1573.04

$ 1400\left(1 + \dfrac{\text{R}}{100}\right)^2$ = 1573.04

$\left(1 + \dfrac{R}{100}\right)^2$ =$ \dfrac{1573.04}{1400}$ = $\dfrac{157304}{140000}$ = $\dfrac{11236}{10000}$

$\left(1 + \dfrac{R}{100}\right) $= $\sqrt{\dfrac{11236}{10000}}$ = $\dfrac{\sqrt{11236}}{\sqrt{10000}}$ =$\dfrac{106}{100} $

$\dfrac{R}{100} $= $ \dfrac{106}{100} - 1 $=$ \dfrac{6}{100}$

R = 6%

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