Question

At what rate percent per annum compound interest will ₹5000 amount to ₹5832 in 2 years?

Answer 1

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 %

Answer 2

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 %