4. Find the rate of compound interest for Rs. 10,000 amounts to Rs. 11

1.	4. Find the rate of compound interest for Rs. 10,000 amounts to Rs. 11,000 2 pmin two years.
Answer» Given: Principle money,P=Rs 10,000 Amount,A=Rs 11,000 Time,t=2 years To find: Rate of COMPOUND interest Solution: We KNOW that $Amount=P(1+\frac{r}{100})^t$ Using the formula $11000=10000(1+\frac{r}{100})^2$ $\frac{11000}{10000}=(1+\frac{r}{100})^2$ $1.1=(1+\frac{r}{100})^2$ $\sqrt{1.1}=1+\frac{r}{100}$ $1.049-1=\frac{r}{100}$ $0.049=\frac{r}{100}$ $r=0.049\times 100=$ 4.9% HENCE, the rate of compound interest=4.9%