Question

At what rate percent compound interest, will 8000 rs amount to 9261 rs in 3 years?

Answer 1

Answer:

20% interest

Explanation:

This is a compound interest problem:

A = p(1+r/n)nt

A = future or final amount = 9261

p = principal = 8000

r = interest rate = tbd

n = # times compounded per year = 4

t = time in years = 9/12 = .75

9261 = 8000(1+r/4)4(.75)

9261/8000 = (1 + r/4)3

Take cube root of both sides

1.05 = 1 + r/4

.05 = r/4

r = 4(.05) = .2 = 20% interest