Question

At what rate percent compound interest
will 80,000 amount to 1,06,480 in
3 years?​

Answer 1

Answer:

Step-by-step explanation:

It is given that  

Principal (P) = 80000

Amount (A) = 88200

Period (n) = 2 years  

Consider r% per annum as the rate of interest percent  

We know that  

A/P=(1+r/100)  

n

 

Substituting the values  

88200/80000=(1+r/100)  

2

 

By further calculation

(1+r/100)  

2

=441/400=(21/20)  

2

 

So we get  

1+r/100=21/20

r/100=21/20−1=1/20

By cross multiplication  

r=1/20×100=5

Hence, the rate of interest is 5% per annum.