Solve this multiple-choice question and choose the correct option.

Problem restatementFind r such that 1200(1 + r)2 = 1348.32. Given data P = 1200; A = 1348.32; t = 2 years Concept/ApproachSolve for r from (1 + r)2 = A÷P. Step-by-step calculation(1 + r)2 = 1348.32 ÷ 1200 = 1.12361 + r = √1.1236 = 1.06r = 0.06 = 6% p.a. Common pitfallsTaking r = 12.36% (the two-year growth) without extracting the square root.

Curioustab

At what annual rate of compound interest will Rs. 1200 amount to Rs. 1348.32 in 2 years?

Aptitude Compound Interest Difficulty: Easy

Choose an option

5% p.a.
6% p.a.
6.5% p.a.
7% p.a.

Answer

Correct Answer: 6% p.a.

Explanation

Problem restatementFind r such that 1200(1 + r)² = 1348.32.

Given data

P = 1200; A = 1348.32; t = 2 years

Concept/ApproachSolve for r from (1 + r)² = A÷P.

Step-by-step calculation(1 + r)² = 1348.32 ÷ 1200 = 1.12361 + r = √1.1236 = 1.06r = 0.06 = 6% p.a.

Common pitfallsTaking r = 12.36% (the two-year growth) without extracting the square root.

← Previous Next →

Discussion & Comments

No comments yet. Be the first to comment!