Question

Calculate rate of compound interest if sum =rs.800 amount =rs.968 time = 2years

Answer 1

Amount = Principal (1 + rate/100)^time

968 = 800 ( 1 + r/100)²

968 = 800 (1+r/100)²

(1+r/100)² = 968/800

(1+r/100)² = 484/400

Applying root on both sides

√(1+r/100)² = √(484/400)

(1+r/100) = 22/20

r/100 = 22/20 - 1

r/100 = 2/20

r = 200/20

r = 10%

Hence we got our rate as 10%.

Answer 2

Given - Principal, rate and time

Find - Rate of compound interest

Solution - The rate of compound interest is 10%.

The rate of compound interest can be calculated using the formula -

Amount = Principal (1+rate/100)^time.

Keep the values in the formula to find the value of the rate of compound interest.

968 = 800 (1+rate/100)²

1 + rate/100 = ✓(968/800)

1 + rate/100 = 1.1

rate/100 = 1.1 - 1

rate/100 = 0.1

rate = 10%.

Thus, the rate of compound interest is 10%.