At what rate of compound interest per annum will a sum of Rs. 5678 become Rs. 7512.6 in 4 years?

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06 Mar 2017 Compound Interest

At what rate of compound interest per annum will a sum of Rs. 5678 become Rs. 7512.6 in 4 years?

OPtion

1) 6.0%
2) 6.025%
3) 6.50%
4) 6.75%
5) 7.025%
6) 7.25%
7) 7.50%
8) 7.75%
9) 8.0%
10) 8.25%

Solution

Answer: 7.25%

7512.6 = 5678 (1+R/100)^4

(1+R/100)^4 = 1.3231

=> (1+R/100) = 1.0725

=> R = 7.25 %

Correct Option: 6 Best Solution (0)