Question

Find Rate of interest for the sum of 10000 for 2years componded annually amounts to Rs.40000?

• A. 200 %
• B. 100 %
• C. 400 %
• D. 50 %

Answer 1

Answer:

B. 100 %

$$ In Compound interest

$Amount=P(1+\frac{r}{100})^2$

$40000=10000(1+\frac{r}{100})^2$

$(1+\frac{r}{100})^2=\frac{40000}{10000}$

$(1+\frac{r}{100})^2=\frac{4}{1}$

$1+\frac{r}{100}=2$

$\frac{r}{100}=2-1$

$r=100$