In two years, at what rate of compound interest would an amount of Rs. 1200 become Rs. 1348.32?
A. 6%
B. 6.5%
C. 7%
D. 7.5%
Answer:A
In two years, at what rate of compound interest would an amount of Rs. 1200 become Rs. 1348.32?
A. 6% B. 6.5% C. 7% D. 7.5%
Explanation: Let's say the rate is R percent each year. Then 1200 x 1 + R/100 to the power2 = 1348.32 = 1 + R/100 to the power2=134832/12000=11236/10000= 1 + R/100 to the power 2 =106/100 to the power 2 = 1 + R/100=106/100 =R = 6%