Question
At what rate of interest per annum, compounded annually,
will an amount of ₹8,000 yield a compound interest of ₹904.2 in 2 years?Solution
A=P+CI = 8000+904.2=8904.2 ATQ- 8904.2 = 8000 (1 + r/ 100)2 8904.2/ 8000 = (1+ r/ 100)2 44521/40000 = (1+r/100)2 211/200 = 1 +r/100 r/100 =11/200 r =11/2=5.5% r=5.5% A=P+CI = 8000+904.2=8904.2 ATQ- 8904.2 = 8000 (1 + r/ 100)2 8904.2/ 8000 = (1+ r/ 100)2 44521/40000 = (1+r/100)2 211/200 = 1 +r/100 r/100 =11/200 r =11/2=5.5% r=5.5%
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