Question
A sum of Rs. 9,600 grows to Rs. 12,696 when invested at
an annual compound interest rate of 'R%' for 2 years. What is the value of 'R'?Solution
A = P x (1 + r/100)t So, 12696 = 9600 x (1 + r/100)2 Or, 12696/9600 = (1 + r/100)2 Or, 529/400 = (1 + r/100)2 Or, (23/20)3 = (1 + r/100)2 Or, 1 + (R/100) = (23/20) Or, (R/100) = (3/20) So, 'R' = 15
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