Question

Given that the interest is only earned on principal .If an investment of rs 1000.00 amounts to rs 1440.00 in two years then what is the rate of interest earned ?

Answer 1

Solution:

Let the rate of interest is r% per annum

We know that if P be any principal, t be the time of investment, r% be the rate of interest and I be the interest earned, then

I = Ptr / 100

Given that Rs. 1000 amounts to Rs. 1440

Then interest = Rs. (1440 - 1000) = 440

Using the above formula for t = 2 years, we get

440 = (1000 * 2 * r) / 100

or, 20r = 440

or, r = 22

Therefore, the rate of interest is 22%

Answer 2

solution is attached above ....