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# A person invested Rs 20000 in a bank which is offering 10% per annum simple interest. After two years he withdrew the money from the bank and deposited th

A person invested Rs 20000 in a bank which is offering 10% per annum simple interest. After two years he withdrew the money from the bank and deposited the total amount in another bank which gives an interest rate of r% p.a. compounded annually. After 2 years he received an amount of Rs.2460 more than what he had invested in that bank. Find the value of r.

• Option 1)

5

• Option 2)

10

• Option 3)

15

• Option 4)

12

• Option 5)

11

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$S.I =\frac{\left \{ 2000 \times 10 \times 2 \right \}}{100} = 4000$

$Total \: amount\: becomes = 24000$

$Amount\: on\: C.I = 24000+2460 = 26460$

$A = P\left [ 1+\frac{R}{100} \right ]^{T}$

$\frac{441}{400}= \left [ 1+\frac{R}{100} \right ]^{2 }$

$\left \{ \frac{21}{20} \right \}^{2}= \left [ 1+\frac{R}{100} \right ]^{2 }$

$1+\frac{R}{100} = \frac{21}{20}$

$R=\frac{1}{20} \times 100$

$R = 5$ %

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