Rames h deposit an amount 9000 .after 2 years he withdraw 4000.after5years he got 7640 rs .find out the rate of interest
Question
Ramesh deposited an amount of 9000. After 2 years, he withdrew 4000. After 5 years, he received 7640 rs. Find out the rate of interest.
Solution
To find out the rate of interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where: A = Final amount after interest P = Principal amount (initial deposit) r = Annual interest rate (unknown) n = Number of times interest is compounded per year (assuming it is compounded annually) t = Number of years
Given information: P = 9000 (initial deposit) t = 5 years A = 7640 (final amount after 5 years)
Step 1: Calculate the amount after 2 years Using the formula, we can find the amount after 2 years:
9000(1 + r/1)^(1*2) = 9000(1 + r)^2
Step 2: Calculate the amount after 5 years Using the formula, we can find the amount after 5 years:
9000(1 + r/1)^(1*5) = 7640
Step 3: Solve for r Now we can solve the equation from step 2 to find the value of r:
9000(1 + r)^5 = 7640
Divide both sides by 9000:
(1 + r)^5 = 7640/9000
Take the fifth root of both sides:
1 + r = (7640/9000)^(1/5)
Subtract 1 from both sides:
r = (7640/9000)^(1/5) - 1
Now you can calculate the value of r using a calculator or by simplifying the expression further.
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