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
___ %

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Solution

Since it is compounded annually, for the first year the calculation is the same as for simple interest.
Amount = Principal + Interest
Interest = 5600 - 5000 = 600
Interest for one year $= \frac{P R T}{100} = 600$

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

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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 ___ %

Since it is compounded annually, for the first year the calculation is the same as for simple interest. Amount = Principal + Interest Interest = 5600 - 5000 = 600 Interest for one year =PRT100=600 R=100×6005000×1=12%

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
___ %

Since it is compounded annually, for the first year the calculation is the same as for simple interest.
Amount = Principal + Interest
Interest = 5600 - 5000 = 600
Interest for one year $= \frac{P R T}{100} = 600$

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