Atul borrowed a sum of ₹12000 and agreed to repay it by paying ₹4800 at the end of first year and ₹9240 at the end of second year. What is the rate of compound interest compounded annually?
Answer & explanation
Correct answer: option 1
We know ,
Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t
Simple Interest = \(\frac{ P× R×T }{100}\)
Amount = Principal + Interest
ATQ,
12000 × ( 1 + \(\frac{R }{100}\) )² = 4800 + { \(\frac{ 4800 × R×T }{100}\)} + 9240
12000 × ( 1 + \(\frac{R }{100}\) )² = 14040 + 48R
By solving ,
R = 10%