What is the rate of compound interest (compounded annually) when a sum of Rupees 2018 amounts to 435

M4maths Previous Puzzles

10 Aug 2018 Compound Interest

What is the rate of compound interest (compounded annually) when a sum of Rupees 2018 amounts to 4356.711 in 10 years ?

OPtion

1) 6.25
2) 6.50
3) 7.25
4) 7.75
5) 6.75
6) 7.00
7) 7.50
8) 6.00
9) 8.00
10)None of these

Solution

CI+P = P [(1+r)^T] = 2018 [(1+R/100)^10 ]

=> 4356.711 = 2018 [(1+R/100)^10]

=> Solving we get R = 8
Option 9)

Correct Option: 9 Best Solution (1)