At what rate of interest will Rs. 20000 becomes Rs. 24200 after 2 years when interest is compounded annually?
Q1. At what rate of interest will Rs. 20000 becomes Rs. 24200 after 2 years when interest is compounded annually?
Answer: 10%
Explanation: (1+r)² = 24200/20000 = 1.21, so 1+r = 1.1 and r = 10% per annum.