2000 rupees was deposited in a bank where interest is compounded annually after 2 years the amount in the account was 2200 rupees. what is the interest rate?
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Answer:
5 percent
Step-by-step explanation:
Formula of a compound interest:
A=P(1+R)^T
1323=1200(1+r%)^2
1323=1200(1+r/100)^2
1323=1200{(100+r)/100}^2
1323=12{(100+r)^2}/100
132300/12=(100+r)^2
11025=(100+r)^2 -- taking sqrt on both side
105=100+r
r=5% Ans
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