This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
ScanSolve AI Answer
Step 1: Identify the given information. Let the principal amount be P. The amount after 2 years is A = 1.21P. The time period is n = 2 years. We need to find the annual compound interest rate R. Step 2: Use the compound interest formula. The formula for compound interest is: A = P (1 + (R)/(100))^n Step 3: Substitute the given values into the formula. 1.21P = P (1 + (R)/(100))^2 Step 4: Solve for R. Divide both sides by P: 1.21 = (1 + (R)/(100))^2 Take the square root of both sides: sqrt(1.21) = 1 + (R)/(100) 1.1 = 1 + (R)/(100) Subtract 1 from both sides: 1.1 - 1 = (R)/(100) 0.1 = (R)/(100) Multiply by 100: R = 0.1 × 100 R = 10\% The annual compound interest rate is 10\%. This matches option (c). The final answer is (c) 10\%. Send me the next one 📸