Question

At what rate of interest should Kumar invest a sum of Rs 1200 so that it becomes Rs 1348.32 in 2 years

• A. 6%
• B. 7%
• C. 8%
• D. 9%
• E. 10%

Answer 1

The correct option is A 6%

Let the rate of interest be R
$134832=1200(1+\frac{R}{100}{)}^2(1+\frac{R}{100}{)}^2=\frac{1348.30}{1200}(1+\frac{R}{100}{)}^2=\frac{11236}{10000}(1+\frac{R}{100})=\frac{106}{100}R=6\%$