Question

A bank offer a interest rate of 12.5% compounded annually. if the ci in the 3rd years is rs.640 find the ci in the 5th year

Answer 1

Answer:

$\huge\underline\mathfrak\color{Red}solution:-$

Given details are,

Rate = 5 % per annum

Compound Interest (CI) = Rs 164

Time (t) = 2 years

By using the formula,

Let P be ‘x’

CI = A – P

164 = P (1 + R/100) n – P

= P [(1 + R/100)n – 1]

= x [(1 + 5/100)2 – 1]

= x [(105/100)2 – 1]

164 = x ((1.05)2 – 1)

x = 164 / ((1.05)2 – 1)

= 164/0.1025

= Rs 1600

∴ The required sum is Rs 1600

$\huge\underline\mathfrak\color{blue} verified:-$