At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years? Choose the correct choice from the following.
A) 6  B) 6.5  C) 7  D) 7.5  E) 8
Let the rate be R% p.a. Then, 1200 x (1 + R/100)*(1 + R/100) = 1348.32 (1 + R/100)*(1 + R/100) = 134832/120000 = 11236/10000 (1 + R/100)*(1 + R/100) = (106/100)*(106/100) 1 + R/100 = 106/100 R = 6%   6nswer 6
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At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?