Question

At what rate percent per annum will a sum of P4000 yield compound interests at of P410 in 2 years?

Answer 1

Answer:

Step-by-step explanation:

Principal =4000

410 in 2 years

amount =(4000+410)=4410

r is interest

A=P(1+r/100)²

4410=4000(1+r/100)²

Or,4410/4000=(1+r/100)²

Or,21×21/20×20=(1+r/100)²

Or,21/20=(1+r/100)

Or,21/20-1=r/100

Or,1/20×100=r

Or,r=5%p.a.