Question

At what percentage per annum a sum of Rs. 500 will amount to Rs.864 in 3 years, if the interest is compunded annually ?​

Answer 1

Answer:

Step-by-step explanation:

Answer 2

The percentage per annum of a sum of Rs. 500 will amount to Rs.864 in 3 years if the interest is compounded annually is 20%

Given:

Principal amount = Rs 500

Time = 3 years

Final amount = Rs 864

To find:

Percentage of the interest money added annually.

Solution:

The following question is based on compound interest which helps us find the interest rate or amount that is been added or deducted.

The formula for the percentage of compound interest is:

A = P ( 1 + R/100)^n

Here A = Final amount = Rs 846

P = Initial principal amount = Rs 500

n = Time = 3 years

R = Interest amount =?

Let us substitute the following to get the interest percentage.

A = P ( 1 + R/100)^n

864 = 500 ( 1 + R/100 )³

864/500 = (1 + R/100)³

216/125 = (1 + R/100)³   From divisible simplification.

(6/5)³ = (1 + R/100)³

Cancel the cube on both sides

6/5 = (1+ R/100)

(1 + R/100) = 6/5

R/100 = 6/5 - 1

R/100 = 6  - 5/5

R = 1/5 x 100

R = 20 %

Therefore, the percentage per annum of a sum of Rs. 500 will amount to Rs.864 in 3 years, if the interest is compounded annually is 20%

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