Question
A sum of ₹16,000 invested at compound interest,
amounts to a ₹21.160 in two years. What is the rate per cent per annum?Solution
T = 2 years According to the question, 21160 = 16000(1 + R/100)2 ⇒ 21160/16000 = (1 + R/100)2 ⇒ 46/40 = (1 + R/100) ⇒ 23/20 = (1 + R/100) ⇒ 2300 = 2000 + 20R ⇒ R = 300/20 ⇒ R = 15 ∴ The rate of interest is 15%
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