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Maths-

General

Easy

Question

Nikita invests Rs6000 for two years at a certain rate of interest compounded annually. At the end of the 1^st year, it amounts to Rs6720. Calculate (i). the rate of interest (ii) the amount at the end of 2^nd year

hint Hint:

Find the rate of interest using the formula of total amount and then find the total amount at the end of 2 years.

The correct answer is: 7526.4 Rupees

Complete step by step solution:
Let the rate of interest = R
(i) We know that $A equals P open parentheses 1 plus R over 100 close parentheses to the power of T$ …(i)
Here, we have T = 1 year, P = 6000, A = 6720 and R = ?
On substituting the known values in (i), we get $6720 equals 6000 open parentheses 1 plus R over 100 close parentheses to the power of 1$
On dividing both the sides by 6000, we have $6720 over 6000 equals 6000 over 6000 open parentheses 1 plus R over 100 close parentheses to the power of 1$
$table attributes columnalign right left right left right left right left right left right left columnspacing 0em 2em 0em 2em 0em 2em 0em 2em 0em 2em 0em end attributes row cell not stretchy rightwards double arrow 672 over 600 equals open parentheses 1 plus R over 100 close parentheses to the power of 1 end cell row cell not stretchy rightwards double arrow R over 100 equals 72 over 600 end cell row cell not stretchy rightwards double arrow R equals 12 straight percent sign end cell end table$
(ii) We know that $A equals P open parentheses 1 plus R over 100 close parentheses to the power of T$ …(ii)
Here, we have T = 2 years, P = 6000, R = 12
Amount at the end of second year will be,
On substituting the known values in (ii), we get $A equals 6000 open parentheses 1 plus 12 over 100 close parentheses squared$
$not stretchy rightwards double arrow A equals 6000 cross times open parentheses 28 over 25 close parentheses squared$
$not stretchy rightwards double arrow A equals 7526.4$ Rupees
So the amount to be paid at the end of 2 years = 7526.4 Rupees.

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