Question

Solvey this...................... .

Answer 1

Hello friend

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We have given:

Principal (P) = 4000

Amount (A) = 4410

Period (N) = 2 years

We have to find,

Rate of interest (R) = ??

By using the identity of Compound Interest,

$A = P(1 + \frac{R}{100}) {}^{N}$
$4410 = 4000( 1 + \frac{R}{100} ) {}^{2} \\ \\ 4410 = \frac{4000}{10000} \times (100 + R) {}^{2} \\ \\ \frac{4410 \times 10}{4} = (100 + R) {}^{2} \\ \\ 11025 = (100 + R) {}^{2} \\ \\ \sqrt{11025} = \sqrt{(100 + R) {}^{2} } \\ \\ 105 = 100 + R \\ \\ R = 105 - 100 \\ \\ R = 5$
Therefore, the Rate Of interest = 5% p.a

Thanks.....

:)