Saved Bookmarks
| 1. |
13. A certain sum of money is invested at acertain fixed rate compounded yearly. If theinterest accrued in two years be 44% of thesum borrowed, find the rate of compoundinterest |
|
Answer» Answer: the RATE of compound interest = 20% PER Annum Step-by-step explanation: A certain sum of money is invested at a certain fixed rate compounded YEARLY. If the interest accrued in two years be 44% of the sum BORROWED, find the rate of compound interest Let say Sum of Money Invested = P Interest Rate = R % Per annum Compound Interest after 2 years = P(1 + R/100)² - P Interest = (44/100)P = 0.44P => P(1 + R/100)² - P = 0.44P => P(1 + R/100)² = 1.44P => (1 + R/100)² = 1.44 => (1 + R/100) = 1.2 => R/100 = 0.2 => R = 20 the rate of compound interest = 20% Per Annum |
|