A sum of ₹14,375, when invested at r% interest per year compounded annually, amounts to ₹16,767 after two years. What is the value of r?

8

The Formula that we used here is -

Amount = P$(1 \;+\; \frac{R}{100})^t$

Compound Interest = Amount - Principal

16767 = 14375 [ 1 + \(\frac{r}{100}\)]²

\(\frac{16767}{14375}\) = [ 1 + \(\frac{r}{100}\)]²

1.1664  = [ 1 + \(\frac{r}{100}\)]²

( 1.08 )² = [ 1 + \(\frac{r}{100}\)]²

\(\frac{r}{100}\) = 1.08 - 1

r = 8%