ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    At what annual compound interest rate will a principal

    amount of Rs. 16,000 grow to Rs. 25,000 in 2 years?
    A 15% Correct Answer Incorrect Answer
    B 20% Correct Answer Incorrect Answer
    C 30% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the rate of interest be R% per annum According to question, 25000 = 16000 ├Ч (1 + R/100)2 (1 + R/100)2┬а= 25/16 Taking positive square root both sides 1 + R/100 = 5/4 R/100 = 5/4 тАУ 1 = 1/4 R = 25%

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question