The compound interest accrued in 2 years on a principle amount of Rs. 16,250/- is Rs. 5,616/- What is the rate of interest p.c.p.a. ?
Correct Answer: Description for Correct answer:
T = 2 years
P = Rs. 16250 / -
C.I. = Rs. 5616/-
R = ?
A = P \( \large 1 + R/ 100 ^{T} \)
P + C. I = P \( \large 1 + R/ 100 ^{T} \)
16250 + 5616 = 16250 \( \large 1 + R/ 100 ^{2} \)
\( \Large \frac{21866}{16250} \) = \( \large 1 + R/ 100 ^{2} \)
\( \Large \frac{841}{625} \) =\( \large 1 + R/ 100 ^{2} \)
\( \large 29/25 ^{2} \) = \( \large 1 + R/ 100 ^{2} \)
\( \Large \frac{29}{25} \) = 1 + \( \Large \frac{R}{100} \)
\( \Large \frac{29}{25} \) = \( \Large \frac{100 + R}{100} \)
2900 = 2500 + 25R
25R = 400
R = 16%
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