Question

83. The compound interest earned on an amount of Rs.
15,000 at the end of 3 years is Rs. 3895.68 What is
s . the rate of interest p.c.p.a.?
​

Answer 1

The rate of interest  p.c.p.a is 8%.

Step-by-step explanation:

Formula of compound interest is

$A = P ( 1 + r/100 )^n$

where A = final amount

P = initial principal

r = rate of interest

n = time period

so, here the final amount A = 15000 + 3895.68

                                              = 18895.68 Rs.

now, putting the given value in the formula,

$18895.68 = 15000 ( 1 + r/100)^3\\\\18895.68/15000 = ( 1 + r/100)^3$

On simplifying, the L.H.S. , we get

∴ $(27/25)^{3} = ( 1 + r/100)^3\\\\\\r /100= 27/25 -1\\r= 8$