Question

At what rate percent per annum will a sum of ₹ 15,625 become ₹ 17,576 in 3 years on compound interest when the interest is compounded annually ?

Answer 1

Given:


Sum(P) = ₹15625, Amount (A)= ₹17576

time(n) = 3 years



A= P(1+ R/100)^n


17576 = 15625 (1+ R/100)^3


17576/15625 = (1+R/100)^3


(26/25)^3 = (1+ R/100) ^3


26/25 = 1+R/100


26/25 -1 = R/100


(26-25)/25 = R/100


1/25 = R/100


25R= 100


R= 100/25= 4


R= 4%

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Hope this will help you.........

Answer 2

Hi friend,

Your answer:

We know that,

A= P(1+ R/100)^n


=> 17576 = 15625 (1+ R/100)^3


=>17576/15625 = (1+R/100)^3


=> (26/25)^3 = (1+ R/100) ^3


=> 26/25 = 1+R/100


=> 26/25 -1 = R/100


=> (26-25)/25 = R/100


=> 1/25 = R/100


=> 25 R = 100


=> R= 100/25


=> R= 4


Hence, rate = 4 %

Hope it helps!