Question

At what rate percent compounded annually will₹12500 amount to ₹21600 in 3 years?

Answer 1

The rate of interest is 20% per annum

Step-by-step explanation:

Amount, A = ₹21600

Principle, P = ₹12500

Time, t = 3 years

Let rate of interest be r

Formula:- $A=P(1+r)^t$

$21600=12500(1+r)^3$

$\dfrac{216}{125}=(1+r)^t$

$1+r=\sqrt[3]{\dfrac{216}{125}$

$1+r=\dfrac{6}{5}$

$r=\dfrac{1}{5}$

Rate of interest is $\dfrac{1}{5}\times 100=20%$

#BAL

Answer 2

2. $amount = principle(1 + rate \div 100)time$