Question

Mark (✓) against the correct answer:
At what rate per cent per annum will Rs 5000 amount to Rs 5832 in 2 years, compounded annually?
(a) 11%
(b) 10%
(c) 9%
(d) 8%

Answer 1

(d) 8%

$$\begin{gathered} \mathrm{Here},A=\mathrm{Rs}.\mathrm{P}\times {\left(1+\frac{R}{100}\right)}^n \\ \Rightarrow \mathrm{Rs}.5832=\mathrm{Rs}.5000\times {\left(1+\frac{R}{100}\right)}^2 \\ \Rightarrow \frac{\mathrm{Rs}.5832}{\mathrm{Rs}.5000}={\left(1+\frac{R}{100}\right)}^2 \\ \Rightarrow {\left(\frac{27}{25}\right)}^2={\left(1+\frac{R}{100}\right)}^2 \\ \Rightarrow 1+\frac{R}{100}=\frac{27}{25} \\ \Rightarrow \frac{R}{100}=\frac{27}{25}-1 \\ =\frac{27-25}{25}=\frac{2}{25} \\ \therefore R\mathit{}=\frac{100\times 2}{25}=8\% \end{gathered}$$