Question
Elvish invested Rs. 5000 in a compound interest scheme
for 2 years at an annual interest rate of m%. If the compound interest obtained was Rs. 1272, find the rate of interest per annum.Solution
ATQ, CI = P(1 + R/100)² – P 1272 = 5000 × [1 + (m/100)]² – 5000 1272 + 5000 = 5000 × [1 + (m/100)]² 6272 = 5000 × (100 + m)² / 100² 6272 × 100² = 5000 × (100 + m)² (100 + m)² = (6272 × 10000) / 5000 (100 + m)² = 12544 112² = (100 + m)² 112 = 100 + m m = 12 So, the interest rate is 12% per annum.
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