Question
The compound interest (compounding half yearly)
received on Rs. 10000 for 2 years is Rs. 10736. What is the rate of interest per annum?Solution
ATQ, Amount = 10000 + 10736 = 20736 20736 = 10000[1 + (R/200)]4 ⇒ 20736/10000 = [1 + (R/200)]4 ⇒ (12/10) - 1 = R/200 ⇒ R = 40 ∴ Rate of interest = 40%
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