Question

at what rate persent per annum compound interest will be rs.6250 ammount to 7290 in 2 years

Answer 1

Solution :

Given,

Principal, P = Rs. 6250

Amount, A = Rs. 7290

By applying the formula of amount,

A = P ( 1 + r/100 )^2

A = P ( 1 + r/100 )^2

=> 7,290 = 6250 ( 1 + r/100 )^2

=> ( 1 + r/100 )^2 = 7290 / 6250

=> ( 1 + r/100 )^2 = 729 / 625

=> ( 1 + r/100 ) = 27/25

=> r/100 = 27/25 - 1

=> r/100 = 27 - 25 / 25

=> r/100 = 2 / 25

=> r = 2/25 × 100

=> r = 2 × 4

=> r = 8%

.°. r = 8%