Question

At what rate percent compound interest will Rs.80000 amount to Rs.88200 in 2 years?​

Answer 1

Answer:

We know that,

A=P[1+(

100

r

)]

n

Let the rate of interest be r

Given that, P=Rs. 80,000, A=Rs. 88,200 and n=2

∴ 88200=80000[1+(

100

r

)]

2

⇒1+(

100

r

)=

20

21

⇒(

100

r

)=

20

21

−1=

20

1

⇒r=

20

100

=5

∴ r=5