At what rate per cent per annum will a sum of Rs 6250 amount to Rs 7840 in 2 yea

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Question

At what rate per cent per annum will a sum of Rs 6250 amount to Rs 7840 in 2 years, interest being compounded annually?

Options:

A . 12 %

B . 13 %

C . 14 %

D . 15 %

Answer: Option A
Let the rate of interest be R% per annum.Using the formula for compound interest, we can write:

7840 = 6250(1 + R/100)^2 (since the interest is compounded annually, the time is in years)
Simplifying the above equation, we get:
(1 + R/100)^2 = 7840/6250
(1 + R/100)^2 = 1.2544
Taking square root on both sides, we get:
1 + R/100 = 1.12 (since square root of 1.2544 is 1.12)
R/100 = 0.12
R = 12%

Hence, the rate of interest is 12% per annum, which is the correct answer.Therefore, the correct option is A.

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3 Comments

default_pub 2021-10-10 09:18:23

0

12%

Rishabh 2018-02-06 11:48:32

0

Show clearly I cannot understand

PURNIMA SHARMA 2017-11-21 09:14:01

0

p =6250
R =?
T =2 Years
A = 7840
A=P(1+R/100)n
7840 = 6250(1+R/100)2
7840/6250 =( 1+r/100)2(28/25)2 = (1+r/100)2
28/25 = 1+r/100
28-25/25 = r/100
3/25 = r/100
3*100/25 = r
12 = r
R = 12%

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