A. Rs.10,840
B. Rs.10,720
C. Rs.10,560
D. Rs.10,280
E. None of these.
Explanation:
Let the rate of interest be R% p.a.
4400{[1 + R/100]2 – 1} = 11193.60
[1 + R/100]2 = (44000 + 11193.60)/44000
[1 + R/100]2 = 1 + 2544/1000 = 1 + 159/625
[1 + R/100]2 = 784/625 = (28/25)2
1 + R/100 = 28/25
R/100 = 3/25
Therefore R = 12 SI on Rs.44000 at 12% p.a. for two years = 44000(2)(12)/100
=Rs.10560
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