Question

At what rate per cent per annum will Rs.$6000$ amount to Rs. $6615$ in $2$ years when interest is compounded annually ?

Answer 1

We have,

$A=Rs.6615,P=Rs.6000,T=2years$

We know that

$A=P{(1+\frac{R}{100})}^T$

$6615=6000{(1+\frac{R}{100})}^2$

${(1+\frac{R}{100})}^2=1.1025$

$1+\frac{R}{100}=1.05$

$\frac{R}{100}=0.05$

$R=5\%$