Question

At what rate of interest will * 2,400 amount to * 2,778.30 in three years if interest being
compounded annually?​

Answer 1

Answer:

5%

Step-by-step explanation:

A=P(1+r/100)3

2778.30=2400(1+r/100)3

root3 2778.30/2400=1+r/100

21/20=(100+r)/100

21*100/20=100+r

105=100+r

r=105-100

r=5

Answer 2

Answer:

• Rate of interest is 5% compounded annually.

Step-by-step explanation:

Given that:

• Principal = Rs 2400
• Amount = Rs 2778.30
• Time = 3 years

To Find:

• Rate of interest.

Let us assume:

• Rate of interest be x.

Formula used:

In compound interest.

• A = P(1 + R/100)ᵀ

Where,

• A = Amount
• P = Principal
• R = Rate of interest
• T = Time

Finding the rate of interest:

⟶ 2778.30 = 2400(1 + x/100)³

⟶ 2778.30/2400 = (1 + x/100)³

⟶ 1.157625 = (1 + x/100)³

⟶ (1.05)³ = (1 + x/100)³

Cancelling the power.

⟶ 1.05 = 1 + x/100

⟶ x/100 = 1.05 - 1

⟶ x/100 = 0.05

⟶ x = 0.05 × 100

⟶ x = 5

∴ Rate of interest = 5%