At what rate of compound interest per annum will a sum of

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At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years ?

1. 7%
2. 7.5%
3. 6%
4. 6.5%

Correct Option: C

Let the rate be R% per annum.
Then,
1200 x (1 + R/100)² = 1348.32
⇒ (1 + R/100)² =1348.32/1200 = 1.1236 = (1.06)²
⇒ (1 + R/100) =1.06
⇒ R/100 = 0.06
∴ R = 6%