Question

At what rate per cent per annum will a sum of Rs 500 amount to Rs 8427 in 2 years, compounded annually? (a) 4 % (b) 5 % (c) 6 % (d) 8 %

Answer 1

Answer:

Correct option is

C

6%

We have,

P=7500 Rs

A=8427 Rs

T=2 years

A=P(1+100R)T

7500+8427=7500(1+100R)T

75008427=(1+100R)2

(1+100R)=25002809=(5053)

(1+100R)=5053−1

100R=5053−1

R=503

R %=6 % 

Hence 6% ( C) is correct ans