Question

At what rate of compound interest per annum will a sum of $Rs.1200$ become $Rs.1348.32$ in $2$ years?

• A. $6$%
• B. $6.5$%
• C. $7$%
• D. $7.5$%

Answer 1

Answer: (A)

$6$%

Let the rate be R% p.a.
Then, 1200×(1+R100)2=1348.321200×(1+R100)2=1348.32%