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- List the given numbers and units.
- Choose the formula that matches the asked value.
- Simplify carefully and compare with options.
Correct Answer: B
Correct Answer: B
Method / Topic: Compound Interest
The answer follows from the arithmetic relation between the given values.
Short Explanation
Detailed Explanation
Correct Answer: B
Method / Topic: Compound Interest
<table cellspacing="0" style="border-collapse:collapse; height:20px; width:85px">
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<tr>
<td style="border-bottom:none; border-left:none; border-right:none; border-top:none; height:20px; vertical-align:top; white-space:normal; width:85px"><span style="color:#000000">Divide the final amount by the principal to obtain 1.21. Since 1.21=(1+r)², the annual rate is 10 percent.</span></td>
</tr>
</tbody>
</table>
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Learn + Solve: Shortcut, Trap & Fast Route Click to view shortcut, steps, and common mistake
Shortcut used, common trap, and the fastest solving route
- List the given numbers and units.
- Choose the formula that matches the asked value.
- Simplify carefully and compare with options.
A sum of Rs. 10000 grows to Rs. 12100 in 2 years at compound interest. Find the annual rate.
Explanation
Correct Answer: B
Method / Topic: Compound Interest
The answer follows from the arithmetic relation between the given values.
Short Explanation
Detailed Explanation
Correct Answer: B
Method / Topic: Compound Interest
<table cellspacing="0" style="border-collapse:collapse; height:20px; width:85px">
<tbody>
<tr>
<td style="border-bottom:none; border-left:none; border-right:none; border-top:none; height:20px; vertical-align:top; white-space:normal; width:85px"><span style="color:#000000">Divide the final amount by the principal to obtain 1.21. Since 1.21=(1+r)², the annual rate is 10 percent.</span></td>
</tr>
</tbody>
</table>
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