Question

a person invests rs. 5000 for two year at a certain rate of interest compounded annually at the end of one year this sum amount to rs. 5600 calculate.
(ii) the amount at the end of the second year

Answer 1

$A=P(1+r{)}^t$

$5600=5000(1+r{)}^1$

$1.12=1+r$

$r=0.12=\frac{12}{100}=12\%$

$A=5000(1+r{)}^2$

$A=\left(5000\right)(1+0.12{)}^2$

$A=6272$Rs.