1.

mponded amually17. A sum compounded annually becomes 16 times of itself in 2 years. Determine the rate ofinterest per annum.

Answer»

For 2 years Amount = Principal(1+Rate of Interest/100)(1+Rate of Interest/100) Amount = 25/16 * Principal 25/16 * Principal = Principal (1+Rate of Interet/100)(1+Rate of Interest/100) Taking square root both the sides 5/4 = (1 + Rate of Interest/100) Rate of Interest/100 = 5/4 - 1 = 1/4 Rate of Interest = 100/4 = 25%

If you find this answer helpful then like it.



Discussion

No Comment Found