Question

A man invests 5000 for three years at a certain rate of interest, compounded
annually. At the end of one year it amounts to 35600. Calculate:
(1) the rate of interest per annum.​

Answer 1

Answer:

12 % p.a

Explanation:

It is given that

Principal = 5000

Consider r% p.a as the rate of interest  

We know that  

At the end of one year  

Interest = Prt/100  

Substituting the values  

= (5000×r×1)/100

= 50r

Here

Amount = 5000 + 5r

We can write it as  

5000+50r=5600

By further calculation  

50r=5600−5000=600

So we get  

r=600/50=12

Hence, the rate of interest is 12% p.a