Question

A person invests 7 5000 for two years at a certain rate of interest compounded annually. At the end of one year, this sum amounts to 2 5600. Calculate (i) the rate of interest per year (ii) the amount at the end of the second year.


please reply as soon as possible ​

Answer 1

Answer:

Solution :-

Simple Interest I= PNR/100

Here for first year,

P= Rs. 5,000

N=1 year

N=1 year

So, Interest at the end of 1st year I=A−P=5,600−5,000= Rs. 600

⇒600=5000×1×R/100

⇒R=12%

So, Interest at the end of 2nd year =

5600×1×12/100=Rs.672

And Amount at the end of 2nd year = Rs. 5,600+ Rs. 672= Rs. 6,272