Question : At what rate of compound interest (compounding annually) per annum will a sum of Rs. 1,000 become Rs. 1,060.90 in 2 years?
Option 1: 2% per annum
Option 2: 4% per annum
Option 3: 3% per annum
Option 4: 5% per annum
New: SSC CHSL Tier 2 answer key released | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
Correct Answer: 3% per annum
Solution :
Given: Total amount = Rs. 1,060.90, Principal = Rs. 1,000, Time = 2 years
Let the rate be $r$.
We know, $\text{Total Amount}=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}$
$⇒1060.90 = 1000 \left(1 + \frac{r}{100}\right)^2$
$⇒(\frac{100+r}{100})^2=\frac{10609}{10000}$
$⇒(\frac{100+r}{100})^2=(\frac{103}{100})^2$
$⇒\frac{100+r}{100}=\frac{103}{100}$
$⇒100+r=103$
$⇒r = 3\%$
Hence, the correct answer is 3% per annum.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Get Updates Brochure
Your Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.
