If the compound interest on a sum of Rs.7000 for 2 years is Rs.1470 then the rate of interest is (interest compounded yearly)

a) 10 % p.a.
b) 12 % p.a.
c) 11 % p.a.
d) 9 % p.a.
e) None

• option a =10% pa
• 8 years agoHelpfull: Yes(7) No(0)
• Option verification is best...
• 8 years agoHelpfull: Yes(3) No(1)
• OPTION A)
  Given CI=1470
  P=7000
  Thus A=CI+P=8470
  Now A=p(1+R/100)^n
  So,8470=7000(1+R/100)^2
  (11/10)^2=(1+R/100)^2
  11/10=1+R/100
  Thus R=10%
• 7 years agoHelpfull: Yes(2) No(0)
• 1470/7000=(1+r/100)2-1 i.e 121/100=(1+r/100)2 so r=10%;
• 7 years agoHelpfull: Yes(0) No(0)