Question

15. A person invests 20000 for 2 years at a
certain rate of interest compounded annually.
At the end of one year this sum amounts to
22400. Calculate :
(i) The rate of interest per annum.
(ii) The amount at the end of the second year.
plz answer with explanation ​

Answer 1

Answer:

1) r=12%; 2)25088

Step-by-step explanation:

compounded amount=p{1+(r/100)}power t

1) 22400=20000{1+(r/100)}

22400=20000(100+r)/100

22400=200(100+r)

22400/200=100+r

112=100+r

r=112-100

=12%p.a.

2) 20000{1+(12/100)}{1+(12/100)}

=20000{1+(3/25)}{1+(3/25)}

=20000{(25+3)/25}{(25+3)/25}

=20000(28/25)(28/25)

=32×28×28

=25088