Question

at what rate per cent per annum will a sum of ₹ 40000 yield compound interest of ₹ 5582.25 in 2 years.

Answer 1

Answer:

6.75%

Step-by-step explanation:

Given,

P= ₹ 40000, n= 2year and C.I = 5582.25, then

A = C.I+P = 5582.25+40000 = 45582.25

find r= ?

We know that,

A = P(1+r/100)ⁿ

45582.25 = 40000(1+r/100)²

(1+r/100)² = 45582.25/40000

1+r/100 = 213.5/200

r/100 = 213.5/200 - 1 = 13.5/200

r = (13.5/200)x100 = 13.5/2 = 6.75