Question

Principle=800,Time=3\2 years,M.v 15084,Find rate​

Answer 1

QUESTION:

Principle=800,Time=3\2 years,M.v 15084,Find rate

ANSWER:

PRINCIPLE = RS 800 (GIVEN)

$n (time)= \frac{3}{2} \times 12 = 18 \: months$

MV = RS 15084 (GIVEN)

$we \: know \: that \: \\ interest = \frac{p \times n(n + 1) \times r}{2 \times 12 \times 100}$

$= \frac{800 \times 18 \times 19 \times r}{2 \times 12 \times 100}$

$= 114r$

WE KNOW THAT,

$mv = \: p \times n \: + interest$

$= > 15084 = (800 \times 18) + interest$

$= > 15084 - 14400 = 114r$

$= > 684 = 114r$

$= > r = 6\%$

TERMS USED:

• MATURITY VALUE:

Maturity value is the amount to be received on the due date or on the maturity of instrument/security that investor is holding over its period of time and it is calculated by multiplying the principal amount to the compounding interest which is further calculated by one plus rate of interest to the power which is time

• INTEREST:

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party