Question
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At what rate of compound interest per annum will a sum of Rs. 1,200 become Rs. 1,348.32 in 2 years?
Correct Option:
D
Explanation
Compound amount after two years:
1200(1+r)^2=1348.32.
Since 1200(1.06)^2=1348.32, the rate is 6% per annum.