Question

if the amount of rs 1000 in two years is rs 1102.5 , then find the rate of interest if it is compounded annually.
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Answer 1

➤ Given :-

Principal (P) :- ₹ 1000

Time (T) :- 2 years

Total amount :- ₹ 1102.5

➤ To Find :-

Rate of interest of the given question.......

➤ Formula :-

${\orange {\bf {\underline {\underline {SI×100÷P×T}}}}}$

➤ Solution :-

Simple interest :-

Total amount - Simple intrest

1102.5 - 1000

= 102.5

Now,

Rate of interest :-

$\longmapsto \sf \: \frac{SI \times 100}{P \times T}$

$\longmapsto \sf \: \frac{102.5 \times 100}{1000 \times 2}$

$\longmapsto \sf \: \frac{10250}{2000}$

$\longmapsto \sf \:5.125 \: \%$

$\Huge\therefore$The rate of interest is 5.125%.