Question

An amount of 14,400 amounts to 15625, in 2 years. What is the rate of compound interest per annum? ​

Answer 1

Answer:

25/6

Step-by-step explanation:

Let the rate of interest be r% p.a.

Here, P = 14400 and A = 15625 and t = 2 years

Now, $A = P (1 + r/100)^t$

$=> 15625 = 14400(1 + r/100)^2\\=> 15625/14400 = ((100 + r)/100)^2\\=> (125/120)^2 = ((100 + r)/100)^2\\=> (125/120) = ((100 + r)/100)\\=> (125/120) * 100 = 100 + r\\=> (625/6) - 100 = r\\=> (625 - 600)/6 = r = 25/6 = 4.167$

Hence, r is 4.167% p.a.

Hope, it will help you! Please mark me as the brainliest!