Multiple choice

Seema invested an amount of Rs. $16,000$/- for two years at C.I. and received an amount of Rs. $17640$ on maturity. What is the rate of interest?

  1. $8\%$
  2. $5\%$
  3. $7\%$
  4. $6\%$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using A = P(1 + r/100)^n, we have 17640 = 16000(1 + r/100)^2. Dividing by 16000 gives 1.1025 = (1 + r/100)^2. Taking the square root gives 1.05 = 1 + r/100, so r = 5%.

AI explanation

Using the compound interest formula A = P(1 + R/100)^n, we substitute the given values: 17640 = 16000 x (1 + R/100)^2. Dividing both sides by 16000 gives (1 + R/100)^2 = 1.1025. Taking the square root of 1.1025 gives 1.05, so 1 + R/100 = 1.05, resulting in a rate of 5%.

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