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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

Answers (1)
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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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