Question

At what percent per annum will a sum of rs1000 amount to rs 1102.50 in 2 years at compound interest

Answer 1

Pricipal (P) = Rs. 1000. Amount (A) = 1102.50. Compound Interest = 1102.50 - 1100 = 102.50. Time (t) = 2 years. Let Rate = r Amount = P x [1 + (r/100)]t 1102.50 = 1000 x[(100 +r)/100]2 1102.50/1000 =[ (100 +r)/100]2 11025 = (100 +r)2 Sq. root (11025) = 100 +r 100 +r = 105 So, the rate = 5%.