If Rs 1000 amount to Rs. 1166.40 in 2 years compounded annually. Find the rate of interest per annum
Answers
Answered by
1
Principal = Rs. 500; Amount = Rs. 583.20; Time = 2 years.
Let the rate be R% per annum. then,
[ 1000 ( 1 + R ) 2 ] = 1166.40.
100
Or
( 1 + R ) 2 = ( 108 ) 2
100 100
⇒ 1 + R = 108 or R = 8.
100 100
So, Rate = 8% p.a
Let the rate be R% per annum. then,
[ 1000 ( 1 + R ) 2 ] = 1166.40.
100
Or
( 1 + R ) 2 = ( 108 ) 2
100 100
⇒ 1 + R = 108 or R = 8.
100 100
So, Rate = 8% p.a
Similar questions