Question

At what rate per annum ci will RS 2000 amount to RS 2315.35 in 3 years

Answer 1

Rate per annum at which CI will amount from RS 2000 to RS 2315.35 in 3 years is 5%

SOLUTION:

Given,

P = RS 2000

C.I = RS 2315.35

T = 3 years

We need to find the rate per annum. i.e. R = ?

We know that,

When interest is compound Annually:

`Amount $=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^(n)$`

Where p = principal amount

r = rate of interest

n = number of years

`$2315.35=2000 *\left(1+(R)/(100)\right)^(3)$`

`$\left(1+(R)/(100)\right)^(3)=(2315.35)/(2000)$`

`$\left(1+(R)/(100)\right)^(3)=1.157$`

`$1+(R)/(100)=\sqrt[3]{1.157}$`

`$1+(R)/(100)=1.0500$`

`$(R)/(100)=1.05-1$`

`$(R)/(100)=0.05$`

R = 5%

Hence, rate per annum is 5 percent.