Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

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?

Options:

10%

30%

20%

25%

Correct Answer:

20%

Explanation:

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%