Question

At what rate per annum will ₹37500 amount to ₹4500 in 2 1/2 years

Answer 1

Answer:

 At what rate per cent per annum will Rs. 2304 amount to Rs. 2500 in 2 years at compound interest?

[A]4\frac{1}{3}\%

[B]4\frac{1}{2}\%

[C]4\frac{1}{6}\%

[D]4\frac{1}{5}\%

\mathbf{4\frac{1}{6}\%}

Let the rate per cent per annum be r. Then,

2500 = 2304 \left ( 1 + \frac{r}{100} \right )^{2}

=> \left ( 1 + \frac{r}{100} \right )^{2} = \frac{2500}{2304} = \left ( \frac{50}{48} \right )^{2}

=> 1+\frac{r}{100} = \frac{50}{48} = \frac{25}{24}

=> \frac{r}{100} = \frac{25}{24} - 1 = \frac{1}{24}

=> r = \frac{100}{24} = \frac{25}{6} = 4\frac{1}{6}\%

Hence option [C] is the right ansewr.