Question

A man borrowed Rs. $3125$ for CI and it amounted to Rs. $4500$ in $2$ years. The rate of C.I. per annum is:

• A. $30\%$
• B. $25\%$
• C. $20\%$
• D. $15\%$

Answer 1

Answer: (C)

$20\%$

Given, amount $=$ Rs. $4500$, $n=2$ years, principle $=$ Rs. $3125$

We have $A=P{(1+\frac{R}{100})}^n$
$\Rightarrow 4500=3125{(1+\frac{R}{100})}^2$
$\Rightarrow {(1+\frac{R}{100})}^2=\frac{4500}{3125}=\frac{144}{100}$
$\Rightarrow 1+\frac{R}{100}=\frac{12}{10}$
$\Rightarrow R=20\%$