Question

at what rate of interest per annum compound interest will rs 6250 amont to rs 7290 in 2yrs?

Answer 1

Given

• Principal (P) = Rs 6250 /-
• Amount (A) = Rs 7290 /-
• Time period (n) = 2 years

To find

• Rate of interest (R)

Solution

• A = P(1+R/100)ⁿ
• 7290 = 6250 (1+R/100)²
• 7290/6250 = (1+R/100)²
• (27/25)² = (1+R/100)²
• 27/25-1 = R/100
• 2/25 = R/100
• 2(100)/25 = R
• R = 8

∴ Rate of interest (R) = 8 %