Question
An investment of ₹21,475 grows to ₹30,924 in two
years when interest is compounded annually at a rate of 'r%' per annum. What is the value of the interest rate 'r'?Solution
ATQ; 30924 = 21475 X {1 + (r/100)}2 Or, {1 + (r/100)}2 = (36/25) Or, 1 + (r/100) = (6/5) Or, (r/100) = (6/5) - 1 Or, (r/100) = (1/5) So, r = 20
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