Compound Interest Practice Test 1

Question : 33 of 40

Marks: +1, -0

At what rate does Rs 2,400 amount to Rs 2,646 in a period of 2 years compounded annually?

Solution:

Amount

=P(1+r/100)^t

2646=2400(1+r/100)^2

441/400=(1+r/100)^2

(21/20)^2=(1+r/100)^2

21/20=1+r/100

r=5%

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