Question

How much will Rs.8000 amount to in 2 years at CI if the rates for successive years are 2% and 5%.​

Answer 1

Answer:

It is given that

Principal (P) = 80000

Amount (A) = 88200

Period (n) = 2 years

Consider r% per annum as the rate of interest percent

We know that

A/P=(1+r/100)

n

Substituting the values

88200/80000=(1+r/100)

2

By further calculation

(1+r/100)

2

=441/400=(21/20)

2

So we get

1+r/100=21/20

r/100=21/20−1=1/20

By cross multiplication

r=1/20×100=5

Hence, the rate of interest is 5% per annum.