Question

At what rate % p.a. will a sum of Rs.4000 yield Rs.1324 as compound interest in 3 years?
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Answer 1

Answer:

P=₹4000

C. I=₹1324

n=3yrs.

A=P+C.I

=4000+1324

₹5324

A=P{1+r/100}^n

5324=4000(1+r/100) ^3

(1+r/100) ^3=5324/4000=1331/1000

(1+r/100) ^3=(11/10) ^3

1+r/100=11/10

r/100=11/10-1=1/1r=10%