Question

person invests Rs. 10,000 for two years at a
certain rate of interest, compounded annually.
At the end of one year, this sum amounts to
Rs. 11,200.
Calculate :
i) the rate of interest per annum.
ii) the amount at the end of second year.​

Answer 1

Answer:

1)rate of interest=12%

2)amount at the end of second year=12,544

Step-by-step explanation:

1) Amount A=11,200

principal P=10,000

if intrest is compounded annually then

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

11,200=10,000(1+R/100)^1 that is n=1

11,200/10,000=(1+R/100)

112/100=1+R/100

(112/100)-1=R/100

12/100=R/100

that is R=12%

2)Amount A=P*(1+R/100)^n

P=10,000

R=12%

substitute in the above formula

A=10,000(1+12/100)^2

A=10000*112/100*112/100