Question

(4) 2000 rupees was deposited in a scheme in which interest is compounded
annually. After two years the amount in the account was 2205 rupees.
What is the rate of interest?​

Answer 1

Answer:

Rate of interest, r = 5%

Step-by-step explanation:

In the question,

Amount deposited in the scheme initially, P = 2000 Rs.

The interest rate is of compounded annually.

The time taken, t = 2 years

Amount after 2 years, A = 2205 Rs.

Now,

We know that Amount is given by,

$A=P(1+\frac{r}{100})^{t}$

So, on putting the values we get,

$2205=2000(1+\frac{r}{100})^{2}\\\frac{2205}{2000}=(1+\frac{r}{100})^{2}\\(1+\frac{r}{100})=1.05\\r=0.05\times 100\\r=5\%$

Therefore, the rate of interest is given by,  r = 5 %