Question

At what rate per cent per annum will Ron lends a sum of $2000 to Ben. Ben returned after 2 years $2205, compounded annually?

please give step by step explanation​

Answer 1

Step-by-step explanation:

Let the rate percent be X

Now according to the question,

$P(1+ \frac{R}{100} )^n = \:a \\ = > 2000{(1 + \frac{R}{100} )}^{2} = 2205\\ = > {( \frac{100 + R}{100})}^2 = \frac{2205}{2000} \\ = > {( \frac{100 + R}{100})}^2 = \frac{441}{400} \\ = > {( \frac{100 + R}{100})}^2 = ({\frac{21}{20})}^{2} \\ = > { \frac{100 + R}{100}} = \frac{21}{20} \\ = > \frac{100 + R}{100} = \frac{105}{100} \\ = > R = 5\%$

Om Namah Shivaya

Debasish Biswal