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If Rs.2000 amounts to Rs.2880 in 2 years at compound interest, what is the rate of interest per annum if the interest is being compounded annually?

If Rs.2000 amounts to Rs.2880 in 2 years at compound interest, what is the rate of interest per annum if the interest is being compounded annually?

  • Option 1)

    10%

  • Option 2)

    20%

  • Option 3)

    15%

  • Option 4)

    30%

  • Option 5)

    25%

Answers (1)
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P = 2000, A = 2880, T = 2 years, R =?

A = p \left ( 1 + \frac{R}{100} \right ) ^{T}

2880 = 2000 \left ( 1 + \frac{R}{100} \right )^{2}

\frac{2880}{2000} = \left ( 1+\frac{R}{100} \right )^{2}

\sqrt{ \left ( \frac{144}{100} \right )} = 1 +\frac{ R}{100}

1.2 = 100+R/100

R = 20 %

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