A sum of money lent at compound interest yields Rs 100 at the end of first year and Rs 105 - Maths - Comparing Quantities

Question

A sum of money lent at compound interest yields Rs 100 at the
end of first year and Rs 105 at the end of 2nd year The rate % per
annum is?

S. Usha Rani · Accepted Answer

Let r= rate of interest; and P= initial sum
P(1+r100)=100; (1)P(1+r100)2=105; (2)Dividing (2) by 1,1+r100=1
05;r100=0 05;r= 5%

A sum of money lent at compound interest yields Rs 100 at the end of first year and Rs 105 at the end of 2nd year .The rate % per annum is?