Practicing Success
At what percent per annum will ₹6000 amounts to ₹7986 in 3 years if the interest is compounded annually? |
10% 8% 12.5% 11% |
10% |
From the formula for Amount with compound interest . we know, A = P(1+$\frac{R}{100})^t$ 7986 = 6000 [ 1 + \(\frac{R}{100}\) ]³ \(\frac{1331}{1000}\) = [ 1 + \(\frac{R}{100}\) ]³ ( \(\frac{11}{10}\) )³ = [ 1 + \(\frac{R}{100}\) ]³ \(\frac{11}{10}\) = 1 + \(\frac{R}{100}\) \(\frac{R}{100}\) = \(\frac{1}{10}\) R = 10% So, Rate of interest is 10%. |