A loan of Rs. 305 was taken at a certain rate per annum of compound interest, for 3 years. After 3years the amount repaid was rs670/- calculate the rate of compound interest.
Answers
Answer:
R = 30 % Per Annum
Step-by-step explanation:
A loan of Rs. 305 was taken at a certain rate per annum of compound interest, for 3 years. After 3years the amount repaid was rs670/- calculate the rate of compound interest.
Principle amount P = Rs 305
Interest Rate = R % per annum
Time T = 3 Years
Amount with compound Interest = P ( 1 + R/100)^T
=> 670 = 305 ( 1 + R/100)³
=> ( 1 + R/100)³ = 670/305
=> ( 1 + R/100)³ = 670/305
=> 1 + R/100 = 1.3
=> R/100 = 0.3
=> R = 30 % Per Annum
Answer:
Step-by-step explanation: amount = 670
principal = 305
time= 3years
formula
amount= p(1+r/n)∧nt
n is number of times the interest has been taken either monthly, weekly ,anually
let rate be x
670 = 305(1+x/1)∧3
divide both sides by 305
670/305 = (1+x/1)∧3
2.1967∧1/3 =((1+x/1)∧3)∧1/3 both cancels
2.1967∧1/3= 1+x
x =2.197∧1/3 -1
x =1.3-1
x = 0.3
=0.3 ×100%
=30%