A Person Invests Rs. 5,000 for Two Years at a Certain Rate of Interest Compounded Annually. at the End of One Year, this Sum Amounts to Rs. 5,600. Calculate : (I) the Rate of Interest per Year - Mathematics

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Sum

A person invests Rs. 5,000 for two years at a certain rate of interest compounded annually. At the end of one year, this sum amounts to Rs. 5,600. Calculate :
(i) the rate of interest per year.
(ii) the amount at the end of the second year.

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Solution

Principal (P) = Rs.5000

Period (T) = 2 years

Amount at the end of one year = Rs.5600

∴ Interest for the first year = A − P

= Rs.5600 − 5000

= Rs.600

(i) ∴ Rate of interest =`("S.I."xx100)/("P"xx"T")`

`=(600xx100)/(5000xx1)`

= 12% p.a.

(ii) Principal for the second year = Rs.5600

Interest for the second year =`(5600xx12xx1)/100`

= ₹672

∴ Amount at the end of the second year

= P + S.I.

= 5600 + 672

= ₹6272

Concept: Interest Compounded Half Yearly
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APPEARS IN

Selina Concise Mathematics Class 8 ICSE
Chapter 9 Interest
Exercise 9 (C) | Q 11 | Page 114
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