Question

At what rate % per annum compound interest will Rs5000 amount to 5832 in2 years?

Answer 1

Answer : Rate of compound interest will be 8% per annum

Given A = 5832
Given P = 5000
Given n = 2 yrs
Let rate of compound interest per annum is r%

Apply compound interest formula
A = P*[(1 + r/100)^n]

5832 = 5000[(1 + r/100)]^2

5832/5000 = [(1 +r/100)]^2

2916/2500 = [(1 +r/100)]^2

There are so many method to find square root of 2916 and 2500 you can use long division method for finding root of 2916 and 2500
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54/50 = [1 + r/100]....... (took square root on both sides)

54/50 - 1 = r/100

4/50 = r/100

r = 8%

Hence rate = 8%