At what rate of compound interest per annum will a sum of Rs. 6000 become Rs. 6615 in 2 years?

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20 Mar 2017 Compound Interest

At what rate of compound interest per annum will a sum of Rs. 6000 become Rs. 6615 in 2 years?

OPtion

1) 7.5
2) 7.25
3) 7.0
4) 6.5
5) 6.25
6) 6.0
7) 5.50
8) 5.25
9) 5.0
10)None of these

Solution

Suppose that rate of interest is R
Using Formula:
A = P (1+r/100)^T

A = 6615, P = 6000 and t= 2
So 6615 = 6000 (1+r/100) ^2
6615/6000 = (1+r/100)^2

1.05 = (1+r/100)
r = 5%

Option 9)

Correct Option: 9 Best Solution (6)