Question

At what rate percent per annum, will a sum of ₹15625 become ₹17576 in three years, when the interest is compounded annually

Answer 1

Heya ✋

Given that

A = ₹17,576

P = ₹15,625

T = 3 years

R = ?

Solution

When the interest is compounded annually

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

=> 17,576 = 15,625(100+R/100)^3

=> 17,576/15,625 = (100+R/100)^3

=> 3√17,576/15,625 = (100+R/100)^3

=> 26/25 = 100+R/100

=> 26 × 100 = 25(100+R)

=> 2,600 = 2,500 + 25R

=> 2,600 - 2,500 = 25R

=> 100 = 25R

=> R = 100/25

=> R = 4 % p.a.






Thanks :))))