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Rs.4500 amounts to Rs.5544 in two years at compound interest, compounded annually. If the rate of the interest for the first year is 12%, find the rate of interest for the second year?
- A10%
- B12%
- C15%
- D20%
Correct answer: A
Discussion 1
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0
CCommunity
10%
Let the rate of interest during the second year be R%. Given,
4500 * {(100 + 12)/100} * {(100 + R)/100} = 5544
R = 10%
Let the rate of interest during the second year be R%. Given,
4500 * {(100 + 12)/100} * {(100 + R)/100} = 5544
R = 10%