if the amount is 2.25 times of the sum after 2 ye at compound interest (compound annually), the rate of interest per annum is
Answers
Answer:
50%
Step-by-step explanation:
if the amount is 2.25 times of the sum after 2 ye at compound interest (compound annually), the rate of interest per annum is
Amount = P(1 + R/100)ⁿ
P = principle = Amount invested
R = rate of interest per annum
n = Time of investment = 2
Amount = 2.25 P
2.25P = P ( 1 + R/100)²
=> 2.25 = ( 1 + R/100)²
=> (1.5)² = ( 1 + R/100)²
=> 1.5 = 1 + R/100
=> 150 = 100 + R
=> R = 50
Rate of interest = 50 % per annum
Answer:
50%
Step-by-step explanation:
Let the principal amount be Rs 100
Amount accumulated on this sum after 2 years = 2.25 times of Principall
= 225
Time period = 2 years
Using mathematical formula of compound interest:
S = P[1 + r/100]ⁿ
where
S = total amount
P = Principal
r = rate of interest
n = time period
225 = 100 [1 + r/100]²
⇒ 2.25 = [1 + r/100]²
⇒ √2.25 = 1 + r/100
⇒ 1.5 = 1 + r/100
⇒ 0.5 = r/100
⇒ r = 50 %