Question

At what rate, will a sum of 50000 yield compound interest of 5582.25 in 2 years

Answer 1

The rate of interest is 5.4%

Step-by-step explanation:

Sum, P p 50000

Compound Interest, CI = 5582.25

Time, t = 2 years

let rate be r% PA

Formula: $CI=P(1+r)^t-P$

$5582.25=50000(1+r)^2-50000$

$(1+r)^2-1=\dfrac{5582.25}{50000}$

$(1+r)^2=1+0.111645$

$1+r=\sqrt{1.111645}$

$r=1.0543-1$

$r=0.054$

Rate = 5.4%

#BAL

Answer 2

this question last answer is 27/4