Question

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

Answer 1

ANSWER:

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

$2315.35=2000 \times\left(1+\frac{R}{100}\right)^{3}$

$\left(1+\frac{R}{100}\right)^{3}=\frac{2315.35}{2000}$

$\left(1+\frac{R}{100}\right)^{3}=1.157$

$1+\frac{R}{100}=\sqrt[3]{1.157}$

$1+\frac{R}{100}=1.0500$

$\frac{R}{100}=1.05-1$

$\frac{R}{100}=0.05$

R = 5%

Hence, rate per annum is 5 percent.