Question:If the amount is `2 1/4` times the sum after `2` years at compound interest ,the rate of interest per annum is : 

A `25%` 
B `30%` 
C `40%` 
D `50%` 

+ Answer
D 

+ Explanation
`p(1 + R/100)^2`

`= 9/(4) p ⇔ (1 + R/100)^2`

`= 9/4 = (3/2)^2`.

`:. 1 + R/100 = 3/2`

`or R/100 = 1/2`

`or R = 50`.

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Irin Moni

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