Seema invested an amount of Rs. $16, 000$ /- for two years at C.I. and received an amount of Rs. $17640$ on maturity. What is the rate of interest?

8 %

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5 %

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7 %

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6 %

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Solution

The correct option is D $5 %$
$P = 16000, A = 176400, T = 2 y e a r s$
$L e t r a t e b e R %$
$A = P (1 + \frac{R}{100})^{T}$
$17640 = 16000 (1 + \frac{R}{100})^{2}$
$\frac{17640}{16000} = (1 + \frac{R}{100})^{2}$
$=> (\frac{42}{40})^{2} = (1 + \frac{R}{100})^{2}$
$=> \frac{42}{40} = 1 + \frac{R}{100}$
$=> \frac{R}{100} = \frac{21}{20} - 1$
$= \frac{1}{20}$
$=> R = \frac{100}{20} = 5 %$
$H e n c e, R a t e % = 5 % p a$

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Seema invested an amount of Rs. 16,000/- for two years at C.I. and received an amount of Rs. 17640 on maturity. What is the rate of interest?

The correct option is D 5%P=16000 ,A=176400 ,T=2yearsLet rate be R%A=P(1+R100)T17640=16000(1+R100)21764016000=(1+R100)2=>(4240)2=(1+R100)2=>4240=1+R100=>R100=2120−1=120=>R=10020=5%Hence, Rate%=5%pa

Seema invested an amount of Rs. $16, 000$ /- for two years at C.I. and received an amount of Rs. $17640$ on maturity. What is the rate of interest?