Question

At what rate of $CI$ will $Rs.4000$ amount to $Rs.5324$ in three years?

Answer 1

Amount is Rs. $5324$

Principle is Rs. $4000$

So, $5234=4000{(1+\frac{r}{100})}^3$

$\Rightarrow \frac{5234}{4000}={\left(\frac{100+r}{100}\right)}^3$

$\frac{11}{10}\times 100=100+r$

$110=100+r$

$r=110-100$

$r=10$.