Question

if ci of rs 3125 in 3 years compounded annually at certain rate is rs 390.20 find the rate please tell​

Answer 1

Answer:

It is given that 

Principal (P) = 3125

Rate of interest for continuous = 4%,5% and 6%

Period (n) = 3 years 

We know that 

Amount =  P(1+r/100)n 

Substituting the values 

=3125(1+4/100)(1+5/100)(1+6/100)

By further calculation 

=3125×26/25×21/20×53/50

= 3617.25

Here 

CI=A−P

Substituting the values 

=3617.25−3125

=492.25