Question

A sum of 400 would become 441 after 2 years what is the rate of compound interest?

Answer 1

A = P(1 + r)ⁿ

Find interest rate:

441 = 400( 1 + r)²

( 1 + r)² = 1.1025

1 + r = 1.05

r = 0.05

Convert 0.05 to percentage:

0.05 x 100 = 5%

Answer: The compound interest rate is 5%

Answer 2

Heya
Here's your answer
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we use compound interest formula -

A(amount) = P(1+r/100)n

$441 = 400 {(1 + \frac{r}{100} )}^{2} \\ = \frac{441}{400} = {(1 + \frac{r}{100} )}^{2} \\ = {( \frac{21}{20} )}^{2} = {(1 + \frac{r}{100} )}^{2} \\ = \frac{21}{20 } = 1 + \frac{r}{100 } \\ = \frac{20}{21} - 1 = \frac{r}{100} \\ = \frac{r}{100} = \frac{1}{20}$

= R = 5%
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glad help you
it helps you
thank you,

@vaibhavhoax
#born with attitude