Question

If Rs. 500 amounts to Rs. 583.20 in two years compounded annually, what is the rate of interest per annum?

Answer 1

Answer:

Answer is 8%

Step-by-step explanation:

Principal = Rs. 500 Amount = Rs. 583.20 , Time = 2 years

Let the rate be R% per annum , Them

[500 (1+R100)2]=583.20

or (1+R100)2=583.2500

or (1+R100)2=58325000

or (1+R100)2=1166410000

or (1+R100)2= (108100)2

or 1+R100= 108100

or 100+R100=108100

or R = 108 - 100 = 8

or R = 8

So , rate = 8% p.a.

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