Multiple choice

What rate percent of compound interest on Rs 1,250 will yield Rs 102 in 2 years?

  1. 5%

  2. 4%

  3. 3%

  4. 6%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

1250 * (1 + r/100)^2 = 1250 + 102 = 1352. (1 + r/100)^2 = 1352 / 1250 = 1.0816. 1 + r/100 = sqrt(1.0816) = 1.04. r = 4%.

AI explanation

The amount is the sum of the principal and interest, so 1250 + 102 = 1352. Using the compound interest formula 1250(1 + r)^2 = 1352, we divide by 1250 to find (1 + r)^2 = 1.0816. Taking the square root gives 1 + r = 1.04, so the rate is 4%.

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