At what rate percentage per annum (correct to one place of decimal) will ₹17,280amount to ₹23,520 in 2 years, if the interest is compounded annually?

Correct option is A

Given:

Principal (P) = ₹17,280

Amount (A) = ₹23,520

Time (T) = 2 years

Interest is compounded annually.

Formula Used: 

Amount compounded annually;

Amount = $$P \left(1 + \frac{R}{100}\right)^T$$​​

Solution:

​$$23520 = 17280 \left(1 + \frac{R}{100}\right)^2$$​​

​$$\left(1 + \frac{R}{100}\right)^2 = \frac{23520}{17280}$$​​

​$$1 + \frac{R}{100} = 1.1667$$​​

​$$\frac{R}{100} = 1.1667 - 1 = 0.1667$$​​

R = 16.67%