Kushi invested a sum of money at compound interest. In 4 years it amounted to Rs. 5400 and in 5 years to Rs. 5670. The interest rate per annum is
Question
Kushi invested a sum of money at compound interest. In 4 years it amounted to Rs. 5400 and in 5 years to Rs. 5670. The interest rate per annum is
Solution
To find the rate of interest, we first need to understand that the difference in the amounts after 4 years and 5 years is actually the interest of the 5th year.
So, the interest for the 5th year is Rs. 5670 - Rs. 5400 = Rs. 270.
Now, we know that the amount after 4 years is Rs. 5400. This is the principal for the 5th year.
The formula to calculate the interest is:
Interest = (Principal * Rate * Time) / 100
We can rearrange this formula to find the rate:
Rate = (Interest * 100) / (Principal * Time)
Substituting the values we have:
Rate = (270 * 100) / (5400 * 1) = 5%
So, the interest rate per annum is 5%.
Similar Questions
A certain sum of money amounts to Rs 6300 in 5 years at 515515%simple interest per annum. Find the sum.Rs 4000Rs 4500Rs 5500Rs5000
Mr. Singh invested $9 840 in a bank for 5 years and received $5 141.40 simple interest.Calculate the rate percent per annum that his investment achieved
What will be the interest on a sum of Rs 10000 in 1 year at6% per annum, if interest is being compounded half-yearly?Rs 1000Rs 609Rs 500Rs 700
Rames h deposit an amount 9000 .after 2 years he withdraw 4000.after5years he got 7640 rs .find out the rate of interest
The difference between simple and compound interests compounded annually on a certain sum of money for 3 years at 5% per annum is Rs. 40. The sum s:
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.