If p=50,000,A=₹2,00,000,T=5years then find the rate of interest
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Given : P = 50000
A = 200000
T = 5 years
To Find : Rate of interest
Solution:
P = 50000
A = 200000
T = 5 years
R = ?
Case 1 : Simple interes
A = P + SI
SI = P * R * T /100
=> 200000 = 50000 + 50000 * R * 5 /100
=> 150000 = 2500R
=> R = 60
60 % rate of interest
Cas2 : Compound interes
A = P (1 + R/100)^T
=> 200000 = 50000( 1 + R/100)⁵
=> 4 = ( 1 + R/100)⁵
=> 1.3195 = 1 + R/100
=> R = 31.95
Approx 32 %
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