if compound interest,
400(1+r)^4 = 480
(1+r)^4 = 1.2
r = .0466
Is your new r
(r + .02)=.0666
or is it
9*1.02 = .0475
??
Do a similar calculation if simple interest.
A sum of ₹400 amounts to ₹480 in 4 years.What will it amount to, if the rate of interest is increased by 2%p.a.?
3 answers
400(1+i)^2 = 480
(1+i)^2 = 1.2
1+i = 1.095445
i = .095445
new rate = .095445 + .02 = .115445
new amount = 400(1.115445)^2 = 497.69
(1+i)^2 = 1.2
1+i = 1.095445
i = .095445
new rate = .095445 + .02 = .115445
new amount = 400(1.115445)^2 = 497.69
Please teach me
0 answers