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?

10%

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%