Question

A sum of Rs10,000 amounts to Rs12,000 in 2 years. Find the rate of interest ​

Answer 1

Answer:

The amount at the end of 'n' years of investing in compound interest.

A = P(1 + \frac{r}{100} {)}^{n}A=P(1+

100

r

)

n

here,here,

P = 12000P=12000

n = 3n=3

r = 5\%r=5%

A = 12000(1 + \frac{5}{100} {)}^{3}A=12000(1+

100

5

)

3

= rs.13891.5=rs.13891.5

now, compound interest

\begin{gathered}CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}\end{gathered}

CI=amount−principle

=13891.5−12000

=rs.1891.5