At what rate percentage per annum will a sum of rupees 4000 yeild compound interest of rupees 410 in 2 years.

Given that:

Principal amount P = Rs. 4000,

Number of years n = 2 years,

Compound interest CI = Rs. 410,

The formula for compound interest is given by

  • 19

 Ok

A = P(1+R/100)n

CI = A-P

CI = P(1+R/100)n - P

410 = 4000(1+R/100)2 - 4000

4410 = 4000(1+R/100)2 

4410/4000 = (1+R/100)2

441/400 = (1+R/100)2

21/20 = 1+R/100

1/20 = R/100

R = 5% 

  • 7
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