On compound interest ₹2,000 amounts to ₹2,226.05 in 2 years. What is the rate of interest per annum(approx) ?

5.5%

According to the question,

The total interest earned in two years = 2,226.05 - 2000 = 226.05

Now, the percentage of interest = \(\frac{226.05 × 100}{2000 }\) = 11.30

11.30% is the interest of two years.

Now, check from the option, per annum interest should be: approx 5.5%

Formula to check : a% + a% + \(\frac{a×a}{100}\)%

                                  : 5.5% + 5.5% + \(\frac{5.5 × 5.5}{100}\)% = 11.30 (approx)

Hence, Interest rate = 5.5% p.a.

**a = Rate of interest per annum.