Question

A man invests Rs 12,000 for 2 years at compound interest. After one year his money amounts to Rs 12,750.
Find (i) the rate of compound interest. (ii) interest for the second year to the nearest paise and (iii) amount after
2 years​

Answer 1

Answer:

It is given that

Principal = 1200

After one year, the amount = 1275

So the interest for one year = 1275−1200=75

We know that

Rate of interest =(SI×100)/(P×t)

Substituting the values

=(75×100)/(1200×1)

By further calculation

=75/12

= 25/4

= 6

4

1

% p.a.

Here

Interest for the second year on 1275 at the rate of 25/4% = Prt/100

Substituting the values

=(1275×25×1)/(100×4)

By further calculation

= 1275/16

= 79.70

=80