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?
Answers
Answered by
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}A=P(1+
100
r
)
t
So, on putting the values we get,
\begin{gathered}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\%\end{gathered}
2205=2000(1+
100
r
)
2
2000
2205
=(1+
100
r
)
2
(1+
100
r
)=1.05
r=0.05×100
r=5%
Therefore, the rate of interest is given by, r = 5 %
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