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At whatrate per c) If the compound interest payable yearly on Rs.8,000 for 2 years is Rs.820, find the rate of compound interest. 00001 is 48.64.​

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3 votes

Answer:

5%

Explanation:

The compound interest formula is A = P (1 + r/n)^nt where A is the future value of the investment, P is the principal investment amount, r is the annual interest rate (decimal), n is the number of times the interest is compounded per year and t is the time in years 1.

In your case, we have P = Rs. 8000, A = Rs. 8820 (Rs. 820 + Rs. 8000), n = 1 (compounded yearly) and t = 2 years 2.

Substituting these values in the above formula we get:

8820 = 8000(1 + r/1)^(1*2)

Solving for r we get:

r = ((8820/8000)^(1/2) - 1)*100

r ≈ 5%

Therefore, the rate of compound interest is approximately 5%

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