What annual compound interest rate will turn Rs 20,000 into Rs 24,200 in 2 years?

Explanation

Given: Principal (P) = Rs 20,000, Amount (A) = Rs 24,200, Time (t) = 2 years. Using the compound interest formula A = P(1 + R/100)^t, we have 24200 = 20000 × (1 + R/100)^2. Dividing both sides by 20000 gives (1 + R/100)^2 = 24200/20000 = 1.21. Taking the square root, 1 + R/100 = 1.1, so R/100 = 0.1. Therefore, R = 10% per annum.