A sum compounded annually becomes times of itself in two years. Determine the rate of interest per annum.

Question

KnowledgeBoat · Accepted Answer

Let rate of interest = r. A = Let Principal = P. Given, sum becomes times of itself in two years, ∴ A = P. Putting values in formula we get, Taking square root on both sides, Hence, rate of interest = 25%.

Mathematics

A sum compounded annually becomes times of itself in two years. Determine the rate of interest per annum.

Compound Interest

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