Multiple choice

The compound interest on Rs.10,000 at the rate x% per annum, which compound annually for 2 years is Rs.1,449. Find the value of x ?

  1. 7

  2. 5

  3. 10

  4. 12

  5. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

10000(1 + r/100)^2 = 11449. (1 + r/100)^2 = 1.1449. 1 + r/100 = sqrt(1.1449) = 1.07. r = 7%.

AI explanation

The total amount after two years is the principal plus the compound interest, which is 10000 plus 1449, giving 11449. Using the compound amount formula, A equals P times the quantity 1 plus R divided by 100 squared, we get 11449 equals 10000 times the quantity 1 plus R divided by 100 squared. Dividing both sides by 10000 gives 1.1449, and taking the square root gives 1.07, so R equals 7%.

Keep practicing — related questions