Question

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

Answer 1

Answer:

The value of rate per annum is R = 12.5 %

Step-by-step explanation:

Principal amount = 576

Interest = 153

Amount after 2 years = 576 + 153 = 729

We know that

$A = P [1 + \frac{R}{100} ] ^{T}$

Put all the values in above equation

$729 = 576 [1 + \frac{R}{100} ]^{2}$

$\frac{27}{24} = 1 + \frac{R}{100}$

R = 12.5 %

This is the value of rate per annum.