At what rate of compound interest per annum will a sum of Rs 50000 become Rs 73205 in 2 years?
Let rate of interest = $$r$$%
Sum = Rs. 50,000
Amount after 2 years = Rs. 73,205
Amount under compound interest = $$P (1 + \frac{R}{100})^T$$
=> $$50000(1 + \frac{r}{100})^2 = 73205$$
=> $$(1 + \frac{r}{100})^2 = \frac{73205}{50000} = 1.4641$$
=> $$1 + \frac{r}{100} = \sqrt{1.4641} = 1.21$$
=> $$\frac{r}{100} = 1.21 - 1 = 0.21$$
=> $$r = 0.21 \times 100 = 21 \%$$
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