**Jameel invested an amount of Rs.17400 for two years. Find the rate of compound interest that will fetch him an amount of Rs.1783.50 at the end of two years?**

A. 8% p.a.

B. 6% p.a.

C. 4% p.a.**D. 5% p.a.**

E. None of these

Explanation:

Let the rate of interest be R% p.a.

17400[1 + R/100]2 = 17400 + 1783.50

[1 + R/100]2 = (17400 + 1783.50)/17400

= 1 + 1025/10000 = 1 + 41/400

= 441/400 = [21/20]2

[1 + R/100] = 21/20

R/100 = 1/20

Therefore R = 5