Question
A sum of Rs 10,000 is invested at r% per annum. The
simple interest for 2 years is Rs 1,600. Find (a) the rate of interest, and (b) the compound amount after 2 years at the same rate.Solution
(a) Simple interest SI = (P × r × t)/100 1600 = (10000 × r × 2)/100 = 200r So r = 1600 / 200 = 8% per annum. (b) Compound amount after 2 years at 8%: A = P(1 + r/100)² = 10000 × (1.08)² = 10000 × 1.1664 = 11,664 Answer: Rate = 8% p.a., CI amount after 2 years = Rs 11,664.
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