At what rate per cent compound interest, does a sum of money become 1.44 times of itself in 2 years ? Let Principal = Rs. yThen Amount= Rs 1.44y n= 2 years ∴ Amount = `"P"( 1 + "r"/100 )^n` ⇒ 1.44y = `y( 1 + r/100)^2` ⇒ `[1.44y]/y = ( 1 + r/100)^2` ⇒ `36/25 = ( 1 + r/100)^2` ⇒ `( 6/5 )^2 = ( 1 + r/100)^2` On comparing, On solving, we get Concept: Concept of Compound Interest - Inverse Formula Is there an error in this question or solution? |