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    Question

    Ankit invested Rs. 12,000 in a scheme that offers

    compound interest at an annual rate of x%, compounded once a year. After 2 years, he received an interest of Rs. 5,280 from the scheme. Find the value of 'x'.
    A 10 Correct Answer Incorrect Answer
    B 15 Correct Answer Incorrect Answer
    C 20 Correct Answer Incorrect Answer
    D 25 Correct Answer Incorrect Answer
    E 30 Correct Answer Incorrect Answer

    Solution

    According to the question, 5280 = 12000 × [(100 + x)/100]2 – 12000 Or, 17280 = 1.2 × (100 + x)2 Or, (100 + x)2 = 17280/1.2 = 14400 Or, 100 + x = 120 Or, x = 20

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