Question

a sum of money amounts to ₹1600 in 3 years and ₹1680 after 4 years at a compound interest. what is the rate of compound interest.what is the rate of compound interest per annum



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Answer 1

Answer:

answer is 5%

Step-by-step explanation:

1680 - 1600 = 80

so the increment is 80 rupees

compound interest checks with the before year and gets interest from principal amount  + earlier interest

now we have 1600 as principal + earlier interest

so 80 is 5% of 1600