At what rate of interest (compounded yearly) will Rs. 10,000 amount to Rs.…

Solution:

1. Use the compound interest formula for yearly compounding: A = P(1 + r)^t, where r is the annual rate in decimal form and t is the number of years.

2. Substitute P = 10000, A = 12100, and t = 2: 12100 = 10000(1 + r)^2.

3. Divide both sides by 10000: 1.21 = (1 + r)^2.

4. Take the positive square root (since rate is positive): 1 + r = √1.21 = 1.1.

5. So r = 1.1 − 1 = 0.1 = 10% per annum.

Final answer: 10% per annum.