Question

At what rate of compund interest will ₹25000 become ₹36000 in 2 years?

Answer 1

principal is 25000

amount is 36000 in 2 years

here we take the rate as r

amount = p(1+r/100 )n

36000 = 25000 ( 1+ r /100 )^2

36000 /25000 = 1 + (r/100)^2

(6/5 )^2= 1 + (r/100) ^2

6/5 -1 = r/100

1/5 = r/100

100 = 5r

100/5 = r

20 = r

so the rate is 20%

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