Question

At what rate % of CI will Rs 5000 amount to Rs 6000 in 5 years.

Answer 1

P= 5000
T=5
R=?
C.P.= 6000-5000
C.P.= 1000
C.P.=(P×R×T)/100
⇒(5000×R×5)/100=1000
⇒25000R/100=1000
⇒250R=1000
⇒R=1000/250
⇒R=4%
The rate should be 4% to get amount Rs 6000.

Answer 2

P = 5000
A = 6000
T = 5 years
Let rate of CI = R%

$A=P(1+ \frac{R}{100} )^t\\ \\ \Rightarrow 6000=5000(1+ \frac{R}{100} )^5\\ \\ \Rightarrow \frac{6000}{5000}= (1+ \frac{R}{100} )^5 \\ \\ \Rightarrow 1+ \frac{R}{100} =( \frac{6}{5} )^{ \frac{1}{5} }=1.037\\ \\ \Rightarrow \frac{R}{100}=1.037-1 = 0.037 \\ \\ \Rightarrow R=0.037 \times 100=3.7$

Rate is 3.7% per annum.