Question

Find the approximate rate of Compound Interest at which Rs. $1000$ becomes Rs. $5000$ in $4$ years.

• A. $10\%$
• B. $15\%$
• C. $50\%$
• D. $30\%$

Answer 1

Answer: (C)

$50\%$

$5000=1000{(1+\frac{R}{100})}^4$

$5^{1/4}=1+\frac{R}{100}$

$1.495=1+\frac{R}{100}$

$\Rightarrow R=49.54\%p.a.$