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?

Compound Interest 07/05/2021

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

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