Question

A sum of rs. 8000 generates rs. 1261 as compound interest in 3 years, interest being compounded annually. The rate of compound interest is

Answer 1

Answer:

amount=8000+1261

=9261

9261=8000{1+r/100}3

9261/8000={100+r/100}3

21/20=100+r/100

r=5%