Question

If the compound interest accured on 14500 is 4676.25 for 2 years what is the rate of interest

Answer 1

Formula for compound interest, Amount = P {1 + R/100}n

Where,

P = Principal Amount

R = Rate of interest

n = Time duration in years

19176.25 = 14500 (1 + R/100)2

⇒ 1+ R/100 = (19176.25/14500)1/2

⇒ 1+ R/100 = (1.3225).5

⇒ R = 15