Question

at what rate percent per annum will a sum of 15625 become 17576 in 3 years and compound interest when the interest is compounded annuallay

Answer 1

Answer:

Interest rate = 4% p.a.

Step-by-step explanation:

Let the interest rate be r with term being 3yrs

Principal = 15625

Amount = 17576

Hence, Interest = 17576-15625 = 1951

1952 = 15625 * ((1+r)³-1)

1951/15625 = (1+r)³-1

(1+r)³ = 1951/15625+1 = (1951+15625)/15625

1+r = ∛(17576/15625

1+r = 26/25

r = (26-25)/25 = 4%