At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

Answer: Option A

Explanation:

Let the rate be R% p.a.

Then, 1200 x		1 +	R		2	= 1348.32
			100

		1 +	R		2	=	134832	=	11236
			100				120000		10000

		1 +	R		2	=		106		2
			100					100

1 +	R	=	106
	100		100

R = 6%