Find the rate at which a sum of money will become four times the original amount in 2 years, if the interest is compounded half-yearly.
Given,
Time = 2 years = 2×2 = 4 half years
Let rate = R % per annum =
Let principal = P
Amount becomes = 4P
So,
A =
=
=
=
=
Hence ,
Rate = 82.84 %