Mathematics
NULL
Medium
Question
Jameel invests Rs.17400 for two years. What compound interest rate yields Rs.1783.50 interest in that time?
A
8% p.a.
B
6% p.a.
C
4% p.a.
D
5% p.a.
✓ Official correct answer
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A
8% p.a.
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B
6% p.a.
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C
4% p.a.
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D
5% p.a.
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Explanation
17400 × ((1+r)² − 1) = 1783.50 ⇒ (1+r)² = 1.1025 ⇒ r = 5% p.a.