Question

Rs. 422.50 deposited in a bank for 4 years earns an interest of Rs.84.50. Find the rate of interest.​

Answer 1

Step-by-step explanation:

Rs. 1000 have been deposited in a bank at interest rate of 5% compounded annually.

The formula for future amount in a compound based interest (calculated annually) is

A=P(1+r)

t

where P,r and t are the principle amount,interest rate and time(in years) respectively.

Calculating for P=1000,r=0.05 and t=12

A=1000(1+0.05)

12

⇒A≈ Rs. 1795.85