Question

Find the rate of interest for which 8000rs amounts to 9261rs after 3 years if the interest is compounded annually
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Answer 1

Answer:

1.5 years

Interest is compounded half yearly.

∴ Rate of interest = 5%

Time = \frac{n}{2}\ years

\because A = P(1 + \frac{R}{100})^{T}

=> 9261 = 8000 (1 + \frac{5}{100})^{n}

=> \frac{9261}{8000} = (\frac{21}{20})^{n}

=> (\frac{21}{20})^{3} = (\frac{21}{20})^{n}

=> n = 3\ half\ years

= \frac{3}{2}\ years = 1\frac{1}{2}\ years