Question

A man invests Rs. 5000 at a certain rate of interest, compounded annually. At the end of one year, it amounts to Rs.5600. The rate of interest per annum is ___%.

Answer 1

Given:

Amount at the end of 1 year = Rs.5600

Principal = Rs.5000

We know that

Amount = Principal + Interest

Interest = 5600 - 5000 = 600

Interest for one year = $\frac{P\times R\times T}{100}$

$\text{600 =}\frac{P\times R\times T}{100}$

$\text{R =}\frac{100\times 600}{5000\times 1}=12\%$