Question
Raghav invested Rs.1,800 at an annual compound interest
rate of 'r%', compounded annually, resulting in a compound interest of Rs.792 after two years. Determine the value of 'r'.Solution
ATQ, Or, 792 = 1800 × [{1 + (r/100)}2 – 1] Or, [{1 + (r/100)}2 – 1] = (792/1800) Or, (2592/1800) = {1 + (r/100)}2 Or, 1 + (r/100) = 1.2 So, r = 20
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