Question

A person invest rs.10000 for 2 years at certain rate of interest compounded annually.At the end of the year this sum amounts to rs.11200.Calculate:
(i) the sum of money
(ii) the amount at the end of second year

Answer 1

Simple interest=11200-10000
=1200
Rate=(1200*100)/(10000*1)=12%
Simple interest for second year=(11200*12*1)/100=1344
Amount=11200+1344=12544