Question

at what rate percent p.a. will a sum ₹4000 amount to ₹5290 in 2 years when compounded annually​

Answer 1

Answer:

The rate of compound interest is 15%.

Step-by-step explanation:

Given : If Rs 4000 amounts to Rs 5290 in 2 years .

To find : The rate of compound interest.

Solution :

Using compound interest formula,

A=P(1+r)^tA=P(1+r)

t

Where A is the amount A=Rs.5290

P is the principle P=Rs.4000

r is the rate

t is the time t= 2 years

Substitute the value,

A=P(1+\frac{r}{100})^tA=P(1+

100

r

)

t

5290=(4000)(1+\frac{r}{100})^25290=(4000)(1+

100

r

)

2

\frac{5290}{4000}=(1+\frac{r}{100})^2

4000

5290

=(1+

100

r

)

2

1.3225=(1+\frac{r}{100})^21.3225=(1+

100

r

)

2

Taking root both side,

\sqrt{1.3225}=1+\frac{r}{100}

1.3225

=1+

100

r

1.15=1+\frac{r}{100}1.15=1+

100

r

\frac{r}{100}=0.15

100

r

=0.15

r=15\%r=15%