Sangeeta interviews rupees 20000 in the bank for 4 year and got back 29282 after 4 years what was the rate of interest per annum payable annually
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Equation:
r = (1/t)(A/P - 1)
A= 29282
P= 20000
Calculation:
Solving our equation:
r = (1/4)((29282/20000) - 1) = 0.116025
r = 0.116025
Converting r decimal to R a percentage
R = 0.116025 * 100 = 11.6025%/year
The interest rate required to get a total amount, principal plus interest, of Rs.29,282.00 from simple interest on a principal of Rs.20,000.00 over 4 years is 11.6025% per year.
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