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At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

/ Aptitude, Compound Interest / By
Question:
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

[A].

6%

[B].

6.5%

[C].

7%

[D].

7.5%

Answer: Option A

Explanation:

Let the rate be R% p.a.

Then, 1200 x 1 + R 2 = 1348.32
100
1 + R 2 = 134832 = 11236
100 120000 10000
1 + R 2 = 106 2
100 100
1 + R = 106
100 100

R = 6%