Question

At what rate will 1000 amount to 1,331 in 3 years if compounded annually?​

Answer 1

Answer:

P=1000

N=3years

A=1331

We know that A = P(1+r/100)^n

1331 = 1000(1+r/100)^n

1331/1000 = (1+r/100)^3

(11/10)^3= (1+r/100)^3

(11/10)=(1+r/100)

11/10-1=r/100

11-10/10=r/100

1/10=r/100

1 = r/100

r = 10

So,Rate of interest=10%