Question

a certain sum of money is invested at a certain fix rate compounded yearly if the interest acquired in 2 years is 44% of sum borrowed find the rate of interest​

Answer 1

Answer:

20%

Step-by-step explanation:

a certain sum of money is invested at a certain fix rate compounded yearly if the interest acquired in 2 years is 44% of sum borrowed

Let say Sum invested  = Rs P

Rate of interest = R % per annum

Time = 2 Years

Interest in 2 years  = P ( 1 + R/100)² - P

Interest acquired = (44/100)P = 0.44P

Equating Interest

P ( 1 + R/100)² - P = 0.44P

=> P ( 1 + R/100)² = 1.44P

=>  ( 1 + R/100)² = 1.44

=> ( 1 + R/100)²  = 1.2²

=> 1 + R/100 = 1.2

=> R/100 = 0.2

=> R = 20

the rate of interest = 20 % per annum