1.

At what rate of compound interest per annum will a sum of Rs. 2000 becomes Rs. 2508.8 in 2 years?1). 24 percent2). 8 percent3). 12 percent4). 16 percent

Answer»

The formula for amount payable at annual compound interest, INCLUDING principal sum, is: $(A = P{\left( {1 + \frac{r}{{100 \times N}}} \right)^{nt}})$

Where:

A = Amount

P = the principal INVESTMENT amount (the initial deposit or loan amount)

r = the annual interest rate (decimal)

n = the NUMBER of times that interest is compounded PER year

t = the number of years the money is invested or borrowed for

Here n = 1

Let the rate be r%

2508.8 = 2000 (1 + r/100)2

r = 12%


Discussion

No Comment Found