Question

If 2000 become 2880 after 2 years at compounding rate of interest then find rate of interest.

Answer 1

Answer:

Step-by-step explanation:

Here, P= Rs.2000, n=2 years, Amount=Rs.2880

Now, According to formula,

Amount= p(1+R/100)^n

=> 2880=2000(1+R/100)^2

=> 2880/2000=(1+R/100)^2

=> 36/25=(1+R/100)^2

=> (6/5)^2=(1+R/100)^2

=> 6/5=1+R/100

=> 6/5*100=100+R

=> R=120-100

=> R=20%