Question

At what rate of interest would rs 1800 amount to rs 2500 in 2 years

Answer 1

Interest formula: A = P(1 + rt)

Solving for r (Rate): r = (1/t)(A/P - 1)

Rate = (1/2)(2500/1800 - 1) = (1/2)(25/18 - 1) = (1/2)(7/18) = 7/36 ≈ 0.194

Rate = 0.194% per annum