Practicing Success
A certain sum of money becomes 1.44 times of itself in 2 years. Find the rate of interest per annum. |
25% 20% 15% 12% |
20% |
ATQ, P = 1 → 2yr → 1.44 (Amount) ↓ ↓ ×1/2 square root* ↓ ↓ P = 1 → 1yr → 1.2times Interest = 1.2 - 1 = 0.2 Interest rate = \(\frac{0.2}{1}\) × 100 = 20%
OR Amount = P (1+ \(\frac{r}{100}\))t ATQ, ⇒ 1.44P = P (1+ \(\frac{r}{100}\))2 ⇒ 1.44 = (1+ \(\frac{r}{100}\))2 ⇒ 1.2 = (1+ \(\frac{r}{100}\))1 ⇒ Interest = 1.2 - 1 = 0.2 ⇒ Interest rate = \(\frac{0.2}{1}\) × 100 = 20% |