An amount increases by 40% in 5 years at simple interest. By how much % does it increase in 2 years at the same rate on compound interest?
A)
21%
B)
17.28%
C)
16.64%
D)
13.31%
Correct Option - C
Explanation
S.I = 0.4P = P*5*R/100
R=8%
A = P[1+(8/100)]^2 = P[1.08]^2 = 1.1664P
It increases by 16.64%