Alex invested an amount of $500 for two years. Find the rate of compound interest that will fetch him an amount of $83.20 at the end of two years?
Choose the correct option
A) 8%
B) 10%
C) 12%
D) 7%
E) 15%
Let the rate of interest be R% p.a.   500[1 + R/100]^2 = 583.20   [1 + R/100]2 = (583.20)/500   = 11664/10000 = [108/100]2   [1 + R/100] = 108/100   R=8%   8%nswer is 8%
<result>A</result>
Alex invested an amount of $500 for two years. Find the rate of compound interest that will fetch him an amount of $83.20 at the end of two years?