Question

how to find rate in compound interest​

Answer 1

Answer:

Compound interest= ((P*(1+i)^n) - P) or   = P [(1 + i)^n – 1], where P is the principal, i is the annual interest rate, and n is the number of periods

Take a three-year loan of $10,000 at an interest rate of R% that compounds annually and the interest is  $1,576.25. What would be R? In this case, it would be:      

10,000 [(1 + R)^3 – 1] = 1,576.25

             [(1 + R)^3 – 1]  = 0.157625

                      (1 + R)^3 = 1.157625

                              1+R = 3√1.157625

                              1+R = 1.05

                                 R = 0.05