Question

If Rs. 600 amounts to Rs. 1,510 at compound interest in 12 years, find the rate of
interest.​

Answer 1

Answer:

Rate of compound interest = 8%

Step-by-step explanation:

Given that,

principle = Rs.600

amount = Rs. 1,510

time = 12 years

We have to find , compound rate of interest r

Now, A = P ( 1+r/100)^t

=> 1,510 = 600*( 1+ r/100)^12

=> ( 1+ r/100)^12 = 151/60

=>12* log (1+ r/ 100) = log (151/60)

=> log (1+r/100) = 1/12* log (151/60)

=> 1+r/100 = 10^0.0334

=> r/100 = 1.08-1

=> r = 100* 0.08

=> r = 8

therefore, required rate of compound interest is 8%.