Question

Find the rate of interest in case of compound interest compounded annually if Rs. 1384.5 were obtained on depositing Rs 2000 for 2 years?

Answer 1

Answer:

13

Explanation:

Let the rate of interest be r

p=Rs 2000

t=2 years

cl =1384.5

n=1

cl=p(1+r/n)^nt -p 2000(1+r)^2-2000=1384.5

=2000(1+r) =1384.5+2000

2000(1+r)^2= 3384.5

(1+r)^2=3384.5/2000=1.69225

(1+r)=√1.69225

r=13%