Multiple choice

Radha invested Rs.1,600 on compound interest for 2 years. She received Rs.1,764 after the specified period. Find the rate of interest per annum.

  1. 7%

  2. 6%

  3. 5%

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

Using the compound interest formula A = P(1 + r/100)^n, we have 1764 = 1600(1 + r/100)^2. Dividing by 1600 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, Amount = P(1 + R/100)^T. Substituting the given values results in 1764 = 1600(1 + R/100)^2, which simplifies to (1 + R/100)^2 = 1764 / 1600 = 1.1025. Taking the square root of both sides gives 1 + R/100 = 1.05, so R/100 = 0.05 and the rate of interest is 5%.

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