Question
A sum of Rs. 7500 was invested at a certain annual compound
interest rate and earned Rs. 1908 in interest over 2 years. What was the annual rate of interest?Solution
ATQ,
Let the rate of interest is R% per annum.
According to question,
7500 × [(1 + R/100)² – 1] = 1908
(1 + R/100)² – 1 = 159/625
(1 + R/100)² = 159/625 + 1
(1 + R/100)² = 784/625
1 + R/100 = 28/25
R/100 = 3/25
R = 12%
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