At what rate of compound interest per annum will a sum of Rs. 5000 become Rs. 10068 in 10 years?

M4maths Previous Puzzles

16 Sep 2019 Interest

At what rate of compound interest per annum will a sum of Rs. 5000 become Rs. 10068 in 10 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

A = P (1 + r/n)^t 
Solving for R, we get R= 7.25%

Correct Option: 5 Best Solution (1)