At what rate of compound interest (Compounding annually) per annum will a sum of Rs.1000become Rs.1,060.90 in 2 years ?
Answer & explanation
Correct answer: option 3
Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t
1060.90 = 1000 × ( 1 + \(\frac{rate }{100}\) )²
\(\frac{1060.90 }{1000}\) = ( \(\frac{rate }{100}\))²
On solving ,
Rate = 3%