Question

A man invests Rs12000 for two years at a certain rate of interest,
3 3
compounded annually. At the end of one year, it amounts to Rs. 13200. Calculate. 4
I. The rate of interest per annum.
II. The amount at the end of second year.
III. The compound interest earned in 2 years.

Answer 1

Answer:

i)10%,ii)1350,iii)1520

Step-by-step explanation:

i)I=A-P=13200-12000=1200

R=I×100/P×T

R=1200×100/12000

R=10%

ii)Interest for 2nd year= P×R×T/100

I=13200×10×1/100

I=1320

A=P+I

A=13200+1320

A=13520

iii)C.I=1320+1200=1520