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Posted by on Saturday, June 11, 2011 at 5:52am.

Sherpa invests $10,000 in a saving account which pays a compound interest at R% per year if the total interest earned in 2years is $400, find the value of R.

  • Maths - , Saturday, June 11, 2011 at 6:32am

    Solve this for R (as a decimal):

    10,000*(1 + R)^2 = 10,400
    (1+R)^2 = 1.0400
    1+R = 1.0198
    R = 0.0198 or 1.98%

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