Question

At what percent per annum will a sum of 7500 give 927 as compound interest in two years?

Answer 1

Answer:

Step-by-step explanation:

Given that

P = ₹7,500

C.I. = ₹927

T = 2 years

R = ?

Solution

When the interest is compounded annually

C.I. = P{(1+R/100)^n - 1}

=> 927 = 7,500{(100+R/100}^2 - 1}

=> 927/7,500 = (100+R/100)^2 - 1

=> 309/2,500 = (100+R/100)^2 - 1

=> 309/2,500 + 1 = (100+R/100=^2

=> 309+2,500/2,500 = (100+R/100)^2

=> √2,809/2,500 = 100+R/100

=> 53/50 = 100+R/100

=> 53 × 100 = 50(100+R)

=> 5,300 = 5,000 + 50R

=> 5,300 - 5,000 = 50R

=> 300 = 50R

=> R = 300/50

=> R = 6 % p.a.