Question

At what percent p.a. will the compound interest on `27000 become `5768 in 3 years?

Answer 1

Answer:

At what rate percent per annum compound interest will 2304 amount to 2500 in 2years ?

Answer

It is given that

Amount = 2500

Principal = 2304

period (n) = 2 years

Consider r% p.a. as the rate of interest

We know that

A = P(1+r/100)

n

It can be written as

(1+r/100)

n

=A/P

Substituting the values

(1+r/100)

2

=2500/2304

By further calculation

(1+r/100)

2

=625/576=(25/24)

2

So we get

1+r/100=25/24

r/100=25/24−1

Taking LCM

r=100/24=

6

25

=4

6

1

Hence, the rate of interest is 4

6

1

% p.a.