Question

A sum of ₹16,000 earns ₹1640 as interest in 2 years when compounded annually. Find the rate of interest. ​

Answer 1

Answer: it is given that sum of 16000 Rs , 1640 Rs as interest in 2 years when compounded annually. so, the rate of interest must be 5 % per annum. hence, rate of interest 5% per annum is correct.

Answer 2

Given

p=16000

I=1640

n=2

formula

R=p×n/100×I

solution

r =16000×2/100×1640

r=32000/164000

r=32/164

r=19.51

Rate of interest is 19.51(expected 20%)