Question
Sohan gave Rs. 5000 to Ramesh on simple interest at 12%
per annum. After 3 years, he invested the total money received from Ramesh in a plan giving compound interest at 'R%' p.a. (compounded annually) for 2 years. If the final amount received by Sohan is Rs. 8064, find the value of 'R'.(Round off to nearest integer value)Solution
ATQ; Amount received from Ramesh = 5000 + {(5000 × 12 × 3) / 100} = Rs. 6800 ATQ; 8064 = 6800 × {(100 + R) / 100}² (8064 / 6800) = {(100 + R) / 100}² 1.18647 ≈ {(100 + R) / 100}² 1.0893 ≈ {(100 + R) / 100} 108.93 ≈ 100 + R R ≈ 8.93 (Rounding to nearest integer, R = 9%)
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