At what rate percent per annum will a sum of Rs. 50625 amounts to Rs. 104976 in four years, if the interest is compounded annually?
Answer & explanation
Correct answer: option 3
Principal : Amount
50625 : 104976
625 : 1296
Ratio after four years:
Principal : Amount = \(\sqrt[4]{625}\) : \(\sqrt[4]{1296}\)
= 5 : 6
Rate percent = \(\frac{1}{5}\) × 100 = 20%