Question

A sum of rs 5000/- amounts to rs 6050/- in two years at compound interest. What is the rate of interest?

Answer 1

Answer:

5000(1+r/100)^2 = 6050

5000(1+r/100)^2=6050

(1+r/100)^2=605/500

(100+r)/100 * (100+r)/100=121/100

(100+r)^2=121/100*10000

(100+r)^2=12100

we will square root both the sides

so 100+r=110

r=110-100

r=10

so 10%

Step-by-step explanation: