ABC26GN4164 · Compound Interest
Subject: General Aptitude · Chapter: Compound Interest · Exam: 2009 · Marks: · Difficulty:
An amount of ₹ 10000 becomes ₹ 14641 in 2 years if the interest is compounded half-yearly. What is the rate of compound interest p.c.p.a.?
(a)10\%
(b)12\%
(c)16\%
(d)20\%
(e)None of these
Answer
Explanation
Let the rate be $R \%$ p.a. Then, $10000\left(1+\frac{R}{2 \times 100}\right)^{4}=14641$ $$\begin{aligned} & \Rightarrow\left(1+\frac{R}{200}\right)^{4}=\frac{14641}{10000}=\left(\frac{11}{10}\right)^{4} \Rightarrow 1+\frac{R}{200}=\frac{11}{10} \\ & \Rightarrow \frac{R}{200}=\frac{1}{10} \Rightarrow R=20 \% \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.
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