Question

At what rate per cent per annum will 4000 amount to 4410 in 2 year when compounded annually

Answer 1

Given that:
Principal amount P = Rs. 4000,
Number of years n = 2 years,
Compound interest CI = Rs. 410,
The formula for compound interest is given by

CI = A-P
CI = P(1+R/100)n - P
410 = 4000(1+R/100)2 - 4000
4410 = 4000(1+R/100)2 
4410/4000 = (1+R/100)2
441/400 = (1+R/100)2
21/20 = 1+R/100
1/20 = R/100
R = 5% 

Answer 2

let r =x
so, 4410=4000 (1+r/100)^2
(1+r/100)^2=4410/4000
(1+r/100)^2=21/20
r / 100=1/20
R=1/20×100
R=5 (ANSWER)