Question

If the amount is 2.25times of the sum after 2years at compound interest (compounded annually), the rate of interest per annum is​

Answer 1

Let principal = P, A = 2.25P, time = 2 years

∴ A = P(1 + r/100)^n

2.25P = P(1 + r/100)^2

225/100 = (1 + r/100)^2

(15/10)^2 = (1 + r/100)^2

r/100 = 5/10

r = 50%

Hope this helps!