Compound Interest Practice Test 4

Question : 18 of 40

Marks: +1, -0

At what rate will Rs 45,600 amount to Rs 50,274 in a period of 2 years compounded annually?

Solution:

50,274= 45,600 (1+r/100)^2

{50,274}/{45,600}= (1+r/100)^2

{441×19×6}/{400×19×6} =(1+r/100)^2

(401/400)=(1+r/100)^2

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

21/20=1+r/100

1/20=r/100

⇒ r = 5%

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