Q

# 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%

Views

$P = 2000, A = 2880, T = 2 years, R =?$

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

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

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

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

$1.2 = 100+R/100$

R = 20 %

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