1.

At what rate of interest will Rs. 20000 become Rs. 28800 after 2 year when interest is compounded annually?1). 5%2). 6%3). 20%4). 15%

Answer»

P = 20000

A = 28800

T = 2 years

Formula for COMPOUND interest,

A = P{1 + R/100}T

⇒ Putting all values in above formula, we get-

⇒ 28800 = 20000{ 1 + R/100}2

⇒ 28800/20000 = {1 + R/100}2

⇒144/100 = {1 + R/100}2

$(\Rightarrow 1 + \frac{{\rm{R}}}{{100}} = \frac{{12}}{{10}})$

⇒ R = 20%



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