At what rate percent per annum will a sum of R640 amount to R774.40 in 2 years, compounded annually?
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Apr 13
To find the rate percent per annum, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where: A = the amount after t years (R774.40) P = the principal amount (R640) r = the annual interest rate (what we are trying to find) n = the number of times interest is compounded per year (1 for annually) t = the number of years (2)