Question

. At what rate per annum will 15,625 amount to 17,576 in 9 months, when compounded quarterly?​

Answer 1

Answer:

It is given that

Amount (A)=17576

Principal (P)=15625

Rate =4% p.a.

Consider n years as the period

We know that

A/P = (1+r/100)

n

Substituting the values

17576/15625=(1+4/100)

n

By further calculation

(26/25)

3

=(26/25)

n

So we get

n=3