At what rate of compound interest per annum will a sum of Rs. 1000 become Rs. 1144.9 in 2 years?

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12 Aug 2019 Interest

At what rate of compound interest per annum will a sum of Rs. 1000 become Rs. 1144.9 in 2 years?

OPtion

1) 6.5%
2) 7.5%
3) 7.75%
4) 8.5%
5) 7.25%
6) 7.0%
7) 8.0%
8) 6.75%
9) 8.25%
10) None of these

Solution

We know, A = P (1 + r/n)^t 
Solving for R, we get R= 7%

Correct Option: 6 Best Solution (0)