If a sum of BDT 5,000 becomes BDT 6,728 in 2 years at compound interest, what is the rate of interest per annum?

Question: If a sum of BDT 5,000 becomes BDT 6,728 in 2 years at compound interest, what is the rate of interest per annum?

Solution: Given,
A = Amount after interest = BDT 6,728
P = Principal amount = BDT 5,000
r = Rate of interest per annum
n = Time in years = 2

Thus, the rate of interest per annum is 16%.