Question

A sum of Rs 2000 amount to Rs2163.20 in 2 years. find the rate of interest if the interest is compounded annually.​

Answer 1

Step-by-step explanation:

principal = 2000 r = 4%annum we have to solve for when the CI should be 163.20

let find the interest on 2000*4% = 80 in one year

as in their is no payback then interst is added to the principal = 2000+80 = 2080

now the interest on 2080 for one year is 2080*4% = 83.20

now calculate the total interest that = 80 + 83.2 = 163.20

total time period to reach the CI is 2 year