Question

What is the rate of interest on T 92,800 for 35 years, the interest of which is ₹ 16240?

Answer 1

Formula :

P(1 + i) ⁿ = Accumulated amount

P = principle amount

i = The rate of interest.

N = Time in years

Accumulated amount = 92800 + 16240 = 109040

P = 92800

n = 35 years

Substituting in the formula :

92800 × (1 + i) ³⁵ = 109040

(1 + i) ³⁵ = 109040/92800

(1 + i) ³⁵ = 1.175

1 + i = (1.175) ^1/35

1 + i = 1.0046183

i = 1.0046183 - 1

i = 0.0046183

= 0.0046183 × 100 = 0.46183%