Question

at what percent per annum will Rs 4000 amount to RS 4410 in 2 years when compounded annually

Answer 1

Let rate%=r
So 4410 = 4000(1 + r/100)^2
=> (1 + r/100)^2 = 4410/4000 = (21/20)^2
=> (1 + r/100) = 21/20
=> r/100 = 1/20
=> r = 100/20 = 5
So at 5% per annum Rs 4000 will amount to RS 4410 in 2 years when compounded annually

Answer 2

Answer:

5%

Step-by-step explanation:

Principal  P = Rs.4000

Time(t) = 2 years

Amount A = Rs. 4410

Rate of interest = ?

No. of compound per year n = 1

Formula of Amount of compound interest :

$A=P(1+\frac{r}{n})^{nt}$

where r is in decimals

Substitute the values

$4410=4000(1+r)^{2}$

$\frac{4410}{4000}=(1+r)^{2}$

$\sqrt{1.1025}=(1+r)$

$1.05=(1+r)$

$0.05=r$

So, rate of interest = 0.05*100= 5%