Question

At what rate percent will the sum of rupees 640 be compounded to 774.40 in 2 years

Answer 1

We have P = 640, T = 2 yrs A = 774.40

A = P(1 + r/100)^n

774.4 = 640(1+r/100)^2

774.4/640 = (1 + r/100)^2

1.21 = (1 + r/100)^2

(1 + r/100) = √1.21

1 + r/100 = 1.1

r/100 = 1.1 - 1 = 0.1

r = 100 x 0.1 = 10%