Correct Answer - Option 2 : 5%
Given
Principal = Rs.400
Amount = Rs.441
Time = 2 years
Concept used
Compound interest
Calculation
\(\frac{A}{P} = {\left( {1 + \frac{R}{{100}}} \right)^n}\)
\(\frac{{441}}{{400}} = {\left( {1 + \frac{R}{{100}}} \right)^2}\)
\(\sqrt {\frac{{441}}{{400}}} = \left( {1 + \frac{R}{{100}}} \right)\)
\(\frac{{21}}{{20}} = \left( {1 + \frac{R}{{100}}} \right)\)
\(\frac{{21}}{{20}} - 1 = \frac{R}{{100}}\)
R = 100/20
R = 5%