Question
A sum of ₹400 amounts to ₹441 in 2 years at a
certain rate of interest per annum, compounded annually. The rate of interest per annum is:Solution
ATQ,
Given: Principal (P) = ₹400 Amount (A) = ₹441 Time (T) = 2 years Rate (R) = ? Compound Interest Formula = A = P × (1 + R/100)² Substitute values: 441 = 400 × (1 + R/100)² 441/400 = (1 + R/100)² 1.1025 = (1 + R/100)² Take square root: √1.1025 = 1 + R/100 1.05 = 1 + R/100 R/100 = 0.05 → R = 5
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