Ramesh borrowed Rs.3600 at a certain rate of interest C.I. and the sum grows to Rs.4624 in 2 years. What is the rate of interest in percentage?
Answer & explanation
Correct answer: option 3
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
Compound Interest = Amount - Principal
4624 = 3600 $(1 \;+\; \frac{R}{100})^2$
\(\frac{4624}{3600}\) = $(1 \;+\; \frac{R}{100})^2$
\(\frac{68}{60}\) = 1 + \(\frac{R}{100}\)
\(\frac{68}{60}\) - 1 = \(\frac{R}{100}\)
\(\frac{8}{60}\) = \(\frac{R}{100}\)
R = 13.3%