Question

After 3 years a 1500 investment is worth 1680 what is the intrest rate on this investment

Answer 1

Answer: c 4%

Explanation:

Answer 2

The rate of interest for the investment is 3.8

Explanation:

Given as :

The Principal = 1500 unit

The Amount after 3 years = 1680 unit

The Time period = 3 years

Let The annual rate of interest = R %

From compounded method

Amount = Principal ×
`(1+(Rate)/(100))^(Time)`

Or, 1680 = 1500 ×
`(1+(Rate)/(100))^(3)`

Or,
`(1680)/(1500)` =
`(1+(Rate)/(100))^(3)`

Or, 1.12 =
`(1+(Rate)/(100))^(3)`

Or,
`(1.12)^{(1)/(3)}` = 1 +
`(R)/(100)`

Or, 1.038 = 1 +
`(R)/(100)`

So, 1.038 - 1 =
`(R)/(100)`

∴ 0.038 × 100 = R

I.e R = 3.8

Hence The rate of interest for the investment is 3.8 Answer