Question

At what rate per annum does the compound interest of Rs 576 becomes to Rs 153 in 2 years

Answer 1

The value of rate per annum is R = 12.5 %

Explanation:

Principal amount = 576

Interest = 153

Amount after 2 years = 576 + 153 = 729

We know that

`A = P [1 + (R)/(100) ] ^(T)`

Put all the values in above equation

`729 = 576 [1 + (R)/(100) ]^(2)`

`(27)/(24) = 1 + (R)/(100)`

R = 12.5 %

This is the value of rate per annum.