At what rate % will a sum of Rs.640 be compounded to 774.40 in 2 years when interest is compounded anually
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The principal = 640
suppose, the yearly rate of compound interest = r%
In 2 years the principal will = 640( 1+r/100)^2
now, 640 (1+r/100)^2 = 774.40
or, (100+r/100)^2 = 774.40/640
or, (100+r/100)^2 = 1.21
or, (100+r/100)^2 =(1.1)^2
or, (100+r/100) = 1.1
or, 100+r = 1.1 ×100
or, r = 110 -100
or, r = 10
now, the compounded interest annually 10%
suppose, the yearly rate of compound interest = r%
In 2 years the principal will = 640( 1+r/100)^2
now, 640 (1+r/100)^2 = 774.40
or, (100+r/100)^2 = 774.40/640
or, (100+r/100)^2 = 1.21
or, (100+r/100)^2 =(1.1)^2
or, (100+r/100) = 1.1
or, 100+r = 1.1 ×100
or, r = 110 -100
or, r = 10
now, the compounded interest annually 10%
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