Mark (✓) against the correct answer:

Question:

Mark (✓) against the correct answer:

At what rate per cent per annum will Rs 5000 amount to Rs 5832 in 2 years, compounded annually?

(a) 11%

(b) 10%

(c) 9%

(d) 8%

Solution:

(d) 8%

Here, $A=$ Rs. $\mathrm{P} \times\left(1+\frac{R}{100}\right)^{n}$

$\Rightarrow$ Rs. $5832=$ Rs. $5000 \times\left(1+\frac{R}{100}\right)^{2}$

$\Rightarrow \frac{\text { Rs. } 5832}{\text { Rs. } 5000}=\left(1+\frac{R}{100}\right)^{2}$

$\Rightarrow\left(\frac{27}{25}\right)^{2}=\left(1+\frac{R}{100}\right)^{2}$

$\Rightarrow 1+\frac{R}{100}=\frac{27}{25}$

$\Rightarrow \frac{R}{100}=\frac{27}{25}-1$

$\quad=\frac{27-25}{25}=\frac{2}{25}$

$\therefore R=\frac{100 \times 2}{25}=8 \%$

 

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