Question
Rohit invested a sum on compound interest at 'R%' per
annum (compounded annually), which amounts to ₹8,000 and ₹11,520 in 2 years and 4 years respectively. Find the value of 'R'.Solution
So, Principal × [1 + (rate/100)]⁴ = 11,520 ---- (I)
And, Principal × [1 + (rate/100)]² = 8,000 ---- (II)
On dividing equation I and II,
We get, [1 + (rate/100)]² = (11,520 ÷ 8,000)
Or, [1 + (rate/100)]² = 1.44
Or, [1 + (rate/100)]² = (1.2)²
Or, 1 + (rate/100) = 1.2
Or, (rate/100) = 0.2
Or, rate = 20%
So, 'R' = 20
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