At what the rate of compound interest per anum will a sum of Rs 2000 beccome Rs 2332.80 in 2 years, interest compounded annually
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Answer:
r = 8%
Step-by-step explanation:
Rate (r) = ?
Principal (P) = Rs. 2000
Amount (A) = Rs. 2332.80
Time (n) = 2 years
A = P (1 + r/100)^2
2332.80 = 2000 {(100+ r)/100}^2
{(100 + r)/100}^2 = 2332.80/2000
{(100 + 2)^2 / (100)^2} = 1.664
10000 + r^2 +200r / 10000 = 1.664
r^2 + 200r = 16640 - 10000 = 6640
r^2 + 200r - 6640 = 0
On Further calculation we get,
r = 8%
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