Question

A farmer borrowed Rs 1,00,000 from Agricultural Development Bank to promote his fish farming. If he paid a compound interest of Rs 33,100 at the end of 3 years, find the rate of interest compounded annually charged by the bank. ​

Answer 1

Answer:

Step-by-step explanation:

Given,

 Borrowed pries (p) = Rs. 1,00,000

compound interest(c.i) = Rs. 33,100

Rate (R) = ?

Time(T) = 3 years

we know,

c.i = P [(1+R\100) ^T -1]

33100 = 100000 [(1+R\100) ^3 -1]

33100\100000 = [(1+R\100) ^3 -1]

0.331 = (1+R\100) ^3 -1

0.331 + 1 = (1+R\100) ^3

1.331 = (1+R\100) ^3

(1.1)^3 = (1+R\100) ^3

1.1 = 1 + R\100

1.1 - 1 = R\100

0.1 x 100 = R

10% =

so, the Borrowed of Rs 1,00,000 in charge rate 1 0% at 3 years.