Question

At what rate percent per annum will ₹8020 amount to in 2 years when interest is compounded annually

Answer 1

Answer:

If the rate of compound interest be r% per annum, then

A = P (1+R/100)T

=> 8820 = 8000(1+r/100)2

=> {8820}/{8000} =  ( 1+r/100)2

=> {441}{400} = 21/20 {2} = (1+r/100)2

=> 1+r/100)2 = 21/20

=> r/100 = 21/20 - 1 = 1/20

=> r = 1/20 * 100 = 5 % per annum.

HOPE THIS HELPS YOU! :)