An amount of Rs. 10000 becomes Rs. 14641 in 2 years if the interest is compounded half yearly. What is the rate of compound interest p.c.p.a. ?
A. 10%
B. 12%
C. 16%
D. 20%
E. None of these
Answer: Option D
Solution(By Examveda Team)
$$\eqalign{ & {\text{Let the rate be R% p}}{\text{.a}}{\text{. }} \cr & {\text{Then,}} \cr & {\text{10000}}{\left( {1 + \frac{{\text{R}}}{{2 \times 100}}} \right)^4} = 14641 \cr & \Rightarrow {\left( {1 + \frac{{\text{R}}}{{200}}} \right)^4} = \frac{{14641}}{{10000}} = {\left( {\frac{{11}}{{10}}} \right)^4} \cr & \Rightarrow 1 + \frac{{\text{R}}}{{200}} = \frac{{11}}{{10}} \cr & \Rightarrow \frac{{\text{R}}}{{200}} = \frac{1}{{10}} \cr & \Rightarrow {\text{R}} = {\text{20% }} \cr} $$Related Questions on Compound Interest
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
E. None of these
A. 625
B. 630
C. 640
D. 650
E. None of these
A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
E. None of these
A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30
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