Question

A man invests Rs 24000 for two years at compound interest, If his money amounts to Rs 27600 after one year, find the amount at the end of second year.

Answer 1

Since, Amount after 1 year

= `"P"(1 + "r"/100)`

⇒ 27600 = `24000(1 + "r"/100)`

⇒ `1 + "r"/100 = (27600)/(24000) = (23)/(20)`

⇒ `"r"/(100) = (23)/(20) - 1 = (3)/(20)`

⇒ r = `(100 xx 3)/(20)` = 15
Amount after 2 year
= `"P"(1 + "r"/100)`

= `27600(1 + 15/100)`

= `27600 xx (115)/(100)`
= 31740.