Question

Q2. A sum of Rs. 50,000 is borrowed and the rate of interest is 10% per
annum. What is the compound interest for 5 years?

Answer 1

Step-by-step explanation:

Solution:

Given details are,

Rate (r) = 20% per annum = 20/2 = 10% (half yearly)

Time (t) = 2 years = 2 × 2 = 4 half years

Principal be = Rs P

P (1 + R/100) n – P (1 + R/100) n = 482

P (1 + 10/100)4 – P (1 + 20/100)2 = 482

P (110/100)4 – P (120/100)2 = 482

P (1.4641) – P (1.44) = 482

0.0241P = 482

P = 482/0.0241

= 20000

∴ Amount is Rs 20000