At what rate of percentage compounded yearly will Rs 80,000 Amount to 88,200 in 2years?Question 16Answera.7b.8c.5d.6

To find the rate of interest compounded yearly, we can use the formula for compound interest which is:

A = P(1 + r/n)^(nt)

Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

Given in the problem: A = Rs 88,200 P = Rs 80,000 n = 1 (since the interest is compounded yearly) t = 2 years

We need to find r.

Substituting the given values in the formula, we get:

88200 = 80000(1 + r/1)^(1*2)

or

88200/80000 = (1 + r)^2

or

1.1025 = (1 + r)^2

Taking the square root of both sides to remove the square on the right side, we get:

1.05 = 1 + r

Subtracting 1 from both sides, we get:

r = 0.05

To convert this decimal to a percentage, we multiply by 100, so:

r = 0.05 * 100 = 5%

So, the rate of interest compounded yearly is 5%. Therefore, the answer is c. 5.