Multiple choice

If the amount is $\displaystyle 2\frac{1}{4}$ times of the sum after $2$ years, then the rate of compound interest must be

  1. $60\%$
  2. $40\%$
  3. $64\%$
  4. $50\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount = P * (1 + r/100)^2. Given Amount = 2.25 * P. (1 + r/100)^2 = 2.25. 1 + r/100 = 1.5. r/100 = 0.5, so r = 50%.

AI explanation

Using the compound interest formula, the final amount A equals the principal P multiplied by (1 + R/100) squared. Since the amount is 2.25 times the principal, the equation becomes 2.25 equals (1 + R/100) squared. Taking the square root of 2.25 gives 1.5, so 1 + R/100 equals 1.5, which means the rate of interest is 50%.

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