Question

Rs. $2000$ amounts to Rs. $2226.05$ in two years at compound interest. The rate of interest is

• A. $5.0$ per cent
• B. $5.25$ per cent
• C. $5.5$ per cent
• D. $6.0$ per cent

Answer 1

Answer: (C)

$5.5$ per cent

We know $A=P{[1+\frac{R}{100}]}^n$

$2226.05=2000{[1+\frac{R}{100}]}^2\frac{2226.05}{2000}={[1+\frac{R}{100}]}^{2}1.113025={[1+\frac{R}{100}]}^{2}1.055=[1+\frac{R}{100}]1.055=\frac{100+R}{100}105.5=100+RR=5.5\%$