A sum amounts to ₹7,562 in 4 years and to ₹8,469.44 in 5 years, at a certain rate per cent per annum when the interest is compounded yearly. If ₹ 10,000 at the same rate of interest is borrowed for two years, then what will be the compound interest (in ₹)?
Answer & explanation
Correct answer: option 1
Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t
ATQ,
8469.44 = 7562 × ( 1 + \(\frac{rate }{100}\) )¹
\(\frac{8469.44 }{7562}\) = 1+ \(\frac{rate }{100}\)
1+ \(\frac{rate }{100}\) = 1.12
\(\frac{rate }{100}\) = 1.12 - 1 = 0.12
rate = 12%