Question

At what rate % per annum CI (compound interest) will Rs. 2000 amount to Rs. 2315.25 in 3 years?

Answer 1

Answer:

The rate of interest will be 5%.

Step-by-step explanation:

Given:

• Principal (P) = ₹2,000

• Amount (A) = ₹2,315.25

• Time (n) = 3 years

To find:

• Rate % (R)

(Compounded Annually)

Method to find:

A = P(1 + R/100)ⁿ

⇒ 2315.25 = 2000(1 + R/100)³

⇒ 2315.25/2000 = (1 + R/100)³

⇒ 1.157625 = (1 + R/100)³

⇒ ∛1.157625 = 1 + R/100

⇒ 1.05 = 1 + R/100

⇒ R/100 = 0.05

⇒ R = 5%

Hope it helps!