At what percent per annum will Ra 12 500 amount to Rs14 045 in 2 years if the interest is compounded...........

Quantitative Aptitude (MTS) Compound Interest

At what percent per annum will Ra 12,500 amount to Rs14,045 in 2 years if the interest is compounded annually?

This questions was previously asked in

SSC MTS 26th October 2021 Shift-3

Let’s break it down:

- We’re looking for the compound interest rate that turns Rs 12,500 into Rs 14,045 in 2 years, with interest compounding yearly.

- The formula is: Amount = Principal × (1 + r/100)^n

- Here: 14,045 = 12,500 × (1 + r/100)^2

Let's rearrange and solve for r:

- (1 + r/100)^2 = 14,045 / 12,500 = 1.1236

- 1 + r/100 = v1.1236 ˜ 1.06

- So, r/100 ˜ 0.06 ? r ˜ 6%

Here’s what each option gives you:

- 7% (too high, would amount to more)

- 9% (way too high)

- 6% ( this matches the math)

- 8% (still higher than needed)

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