Multiple choice

If the compound interest accrued on an amount of Rs. 15000 in two years in Rs. 2496, what is the rate of interest p.c.p.a.?

  1. 8

  2. 10

  3. 6

  4. 4
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Using the compound interest formula: CI = P[(1 + r/100)^n - 1]. Here 2496 = 15000[(1 + r/100)^2 - 1]. Solving gives (1 + r/100)^2 = 1.1664, so 1 + r/100 = 1.08, hence r = 8%. Option A is correct.

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