Question

At what rate of percent per annum will rs.2304 amount to rs.2500 in 2 years at compound interest

Answer 1

Accumulated amount formula :

P(1 + i) ⁿ

P = principle amount = 2304

i = interest rate

n = Time in years = 2

Accumulated amount = 2500

2304 × ( 1 + i) ² = 2500

(1 + i) ² = 2500/2304

(1 + i) ² = 1.085069

(1 + i) = √1.085069

1 + i = 1.0416665

i = 1.0416665 - 1

i = 0.0416665

= 0.0416665 × 100 = 4.167%