Question

If `3000 amounts to `3630 in two years under compound interest, interest being compounded annually, what is the annual rate of interest?

Answer 1

Answer:

10%

Step-by-step explanation:

Initial amount- 3000

Sum in two years- 36030

Interest- compounded yearly x 2 years

Interest rate-x

• 3000*(1+x)^2=3630
• (1+x)^2= 3630/3000
• (1+x)^2=1.21
• 1+x=1.1
• x=0.1 = 10%

Answer is 10% interest rate