Question

Find the annual rate of interest. Principal = 4600 rupees Period = 5 years Total amount = 6440 rupees Annual rate of interest = %

Answer 1

Answer:

The rate of interest for compounded annually is 6.96 %  .

Step-by-step explanation:

Given as :

The principal amount = Rs 4600

The time period = 5 years

The amount after 5 years = Rs 6440

Let The rate of interest = R %

From compounded method

Amount = Principal × $(1+\dfrac{\textrm rate}{100})^{\textrm Time}$

or, Rs 6440 = Rs 4600 × $(1+\dfrac{\textrm R}{100})^{\textrm 5}$

Or, $\frac{6440}{4600}$ =  $(1+\dfrac{\textrm R}{100})^{\textrm 5}$

or, 1.4 =  $(1+\dfrac{\textrm R}{100})^{\textrm 5}$

Or, $(1.4)^{\frac{1}{5}}$ = 1 + $\dfrac{R}{100}$

or, 1.0696 =  1 + $\dfrac{R}{100}$

or, $\dfrac{R}{100}$ = 1.0696 - 1

Or, $\dfrac{R}{100}$ = 0.0696

∴ R = 0.0696 × 100

I.e R = 6.96

Hence The rate of interest for compounded annually is 6.96 %  .  Answer