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If Rs 13200 amounts to Rs.16,558 in two years compounded annually, find the rate of interest per annum.

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14%

12%

16%

10%

answer is B.

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Detailed Solution

Solution: $13200 \times {[\frac{100 + R}{100}]}^{2} = 16558$

$\begin{array}{l} {[\frac{100 + R}{100}]}^{2} = \frac{16558}{13200} \\ 100 + R = 112 \\ R = 12 % \end{array}$

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