Question

At what rate per cent per annum compound interest, will rs.2304 amounts to rs.2500 in 2 years

Answer 1

#BAL

By using formula C.I formula

Or you can do orally diff between 2500- 2304=196

Considering 196 as S.I so 98 per annum

Now 2304 to 2500 is 196 in 2 yrs

So 4r first yr 2304+98 = 2402

Now using S I formula p=2304

(98*100)/2304gives you 4.25%

Similarly for second this 2402 becomes the principal then (98*100)/2402 = 4.079

Then adding both and averaging

(4.079+ 4.25)/ 2=4.16 approx