find the rate percent annum ,if compounded yearly .principal=3136,compound interest =rs.375,time =2years
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P = Principal Amount = 3136
n = Time= 2 years
CI = Compound interest = 375
We know that
CI = P(1+i)^n - P
375 = 3136(1+i)^2 - 3136
375 + 3136 = 3136(1+i)^2
3511 = 3136(1+i)^2
1.1195 = (1+i)^2
√(1.1195) = 1 + i
1.05 = 1 + i
1.05 - 1= i
0.05 = i = 5%
n = Time= 2 years
CI = Compound interest = 375
We know that
CI = P(1+i)^n - P
375 = 3136(1+i)^2 - 3136
375 + 3136 = 3136(1+i)^2
3511 = 3136(1+i)^2
1.1195 = (1+i)^2
√(1.1195) = 1 + i
1.05 = 1 + i
1.05 - 1= i
0.05 = i = 5%
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