Question

Niki invests Rs. 6,000 for 2 years at certain rate of interest compounded annually. At the end of 1st year it amounts to Rs. 6,720. Calculate the rate of interest & amount at the end of the 2nd year.

• A. 11%, Rs.7,500
• B. 12%, Rs.7,526.40
• C. 10%, Rs.7,000
• D. 14%, Rs.8,526
• E. 12%, Rs.7,520

Answer 1

The correct option is B

12%, Rs.7,526.40