Multiple choice

At what rate of interest a sum of money Rs. 32,000 amounts to Rs. 50,000 in 2 years at compound interest?

  1. 25%

  2. 25.5%

  3. 26%

  4. 30%

  5. 33.25%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A = P(1 + r/100)^n. 50000 = 32000(1 + r/100)^2. 50/32 = (1 + r/100)^2. 25/16 = (1 + r/100)^2. 5/4 = 1 + r/100. 1.25 = 1 + r/100. r/100 = 0.25, so r = 25%.

AI explanation

Using the compound interest formula Amount = P * (1 + R/100)^T, we have 50000 = 32000 * (1 + R/100)^2. Dividing both sides gives (1 + R/100)^2 = 1.5625. Taking the square root of 1.5625 gives 1.25, so 1 + R/100 = 1.25. This results in R equaling 25%.

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