At what rate percent per annum compound interest will ₹5000 amount to ₹5832 in 2 years?
Answers
Interest rate = 8 %
Explanation:
Given:
Principal P = Rs.5000
Amount, A = Rs.5832
Time, n = 2 years
We calculate compound interest using the formula:
A = P (1 + R/100)^n
Substituting the values, we get:
5832 = 5000 (1 + R/100)2
(1 + R/100)2 = 5832/5000
(1 + R/100)2 = 2916/2500
(1 + R/100)2 = (54/50)2
1 + R/100 = 54/50
R/100 = (54/50) - 1
R/100 = (54 – 50)/50
R/100 = 4/50
R = 400/50
R = 8
Interest rate = 8 %
Explanation:
Interest rate = 8 %
Explanation:
Given:
Principal P = Rs.5000
Amount, A = Rs.5832
Time, n = 2 years
We calculate compound interest using the formula:
A = P (1 + R/100)^n
5832 = 5000 (1 + R/100)2
(1 + R/100)2 = 5832/5000
(1 + R/100)2 = 2916/2500
(1 + R/100)2 = (54/50)2
1 + R/100 = 54/50
R/100 = (54/50) - 1
R/100 = (54 – 50)/50
R/100 = 4/50
R = 400/50
R = 8
Interest rate = 8 %