9514 1404 393
Answer:
10%
Step-by-step explanation:
The balance when principal P is invested at rate r compounded n times per year for t years is ...
A = P(1 +r/n)^(nt)
We have A = 847, P = 700, n = 1, t = 2 and we want to solve for r. Filling in the values and solving the equation gives ...
847 = 700(1 +r)^2
√(847/700) = 1 +r = 1.10 . . . . divide by 700 and take the square root
r = 0.10 = 10% . . . . . subtract 1
An interest rate of 10% compounded annually will give a balance of ₹847.
