Question

A sum of Rs. $1,200$ lent out at C.I. amounts to Rs. $1,452$ in $2$ years. Calculate the rate of interest.

Answer 1

For ,
$N=2years$
$P=Rs1,200$

On interest being compounded for 2 years,

$Amount=P{(1+\frac{R}{100})}^N$
$1,452=1,200\times {(1+\frac{R}{100})}^2$
$1.21={(1+\frac{R}{100})}^2$
Taking square root on both sides,

$1.1=1+\frac{R}{100}$

$=>R=10$ %