Question

At what rate percent will ₹ 30000 yield ₹ 2448 as compound interest in 2 years?

Answer 1

Given:

• Principal (P) = ₹ 30000
• Compound Interest (C.I.) = ₹ 2448
• Time (n) = 2 years
• Rate of interest = ?

Step-wise calculation:

1. Calculate the Amount (A):

A = P + CI

A = 30000 + 2448 

A = ₹ 32448

2. Use the compound interest formula:

`A = P(1 + r/100)^n`

So, `32448 = 30000(1 + r/100)^2`

3. Divide both sides by 30000:

`(1 + r/100)^2 = 32448/30000`

`(1 + r/100)^2 = 1.0816`

4. Take the square root on both sides:

`1 + r/100 = sqrt(1.0816)`

`1 + r/100 = 1.04`

5. Solve for r:

`r/100 = 1.04 - 1`

`r/100 = 0.04`

r = 0.04 × 100

r = 4%