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    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'.
    A 25 Correct Answer Incorrect Answer
    B 20 Correct Answer Incorrect Answer
    C 15 Correct Answer Incorrect Answer
    D 30 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    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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