Question

At what percent rate of compound interest per annum will the compound interest on NPR 125000 be NPR 91000 in 3 years?

Answer 1

Answer:

11.162%

Step-by-step explanation:

A = P $(1+\frac{r}{n}) ^{nt}$

A - amount

P - principal

r - interest rate (decimal)

t - time

n - number of times of interest is compounded per unit "t"

~~~~~~~~~~~~~~~

n = 1

A = P $(1+r) ^{t}$

$(1+r) ^{t}$ = $\frac{A}{P}$

r = $\sqrt[t]{\frac{A}{P} }$ - 1

A = 125000

P = 91000

t = 3

r = $\sqrt[3]{\frac{125000}{91000} }$ - 1 ≈ 0.11162

r = 11.162%