Question

At what rate of compound interest will Rs. 1,250 amount to Rs. 1,800 in 2 years?​

Answer 1

Step-by-step explanation:

Here is your answer...

Given is Time = 2 years

Amount=1800

Principal = 1250

Rate = ?

The formula to calculate amount is

=A = P(1 + R/100)^T

=1800 = 1250 x (1+ R/100)^2

=1800/1250 = (1+ R/100)^2

=√(36/25) = 1+ R/100

= 6/5 - 1 R/100

=1/5 x 100 = R

= 20 = R

Therefore, the rate is 20%.

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Answer 2

Given :-

• Principal = Rs. 1250
• Amount = Rs. 1800
• Time = 2 years

To Find :-

Rate

Solution :-

We know that

A = P(1 + r/100)ⁿ

1800 = 1250(1 + r/100)²

1800 = 1250(100 + r/100)²

1800/1250 = (100 + r/100)²

36/25 = (100 + r/100)²

√(36/25) = (100 + r)/100

6/5 = (100 + r)/100

On multiplying both sides by 100

6/5 × 100 = (100 + r)/100 × 100

6 × 20 = 100 + r

120 = 100 + r

120 - 100 = r

20 = r

Hence,

Rate is 20%