17 Views

Question : At what rate of compound interest (compounding annually) per annum will a sum of Rs. 250000 becomes Rs. 275625 in 2 years?

Option 1: 8% per annum

Option 2: 3% per annum

Option 3: 10% per annum

Option 4: 5% per annum


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: 5% per annum


Solution : Given,
Amount = Rs. 275625
Principal = Rs. 250000
Time = 2 years
We know, $A = P(1 + \frac{R}{100})^n$
⇒ $275625=250000(1+\frac{R}{100})^2$
⇒ $(1+\frac{R}{100})^2=\frac{275625}{250000}$
⇒ $(1+\frac{R}{100})=\sqrt\frac{275625}{250000}$
⇒ $(1+\frac{R}{100})=\frac{525}{500}$
⇒ $\frac{R}{100}=\frac{525}{500}-1$
⇒ $\frac{R}{100}=\frac{25}{500}$
⇒ $R=\frac{25}{5}= 5$%
Hence, the correct answer is 5% per annum.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books