Practice mode Compound Interest

At what rate of compound interest per annum will Rs. 6,250 become Rs. 7,290 in 2 years?

Correct answer B. 8%

Explanation

(1 + R/100)² = 7290/6250 = 1.1664 = (1.08)², so R = 8% per annum. Check: 6250 × 1.08 = 6750 and 6750 × 1.08 = 7290.

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