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

Mathematics

1 answer:

ArbitrLikvidat [17]3 years ago

4 0

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.

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