Question
If Rs. 35,000 amounts to Rs. 42350 in two years
compounded annually, find the rate of interest per annum.ÂSolution
 A = P ( 1 + R/100)t 42350 = 35000 ( 1 + R/100)² 42350 /35000= (100 + R/100)² 11/10 = (100 + R )/100 1100 = 1000 + 10 R 1100 – 1000 = 10 R 100 = 10 R R = 10% p.a .
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