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    Question

    If Rs. 35,000 amounts to Rs. 42350 in two years

    compounded annually, find the rate of interest per annum. 
    A 10% p.a. Correct Answer Incorrect Answer
    B 15% p.a. Correct Answer Incorrect Answer
    C 14% p.a. Correct Answer Incorrect Answer
    D 8% p.a. Correct Answer Incorrect Answer

    Solution

      A = P ( 1 + R/100)t 42350 = 35000 ( 1 + R/100)² 42350 /35000= (100 + R/100)² 11/10 = (100 + R )/100 1100 = 1000 + 10 R 1100 – 1000 = 10 R 100 = 10 R R = 10% p.a .

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