Question

At what rate % per annum will a sum of $Rs13,700$ invested for 3 years, amounts to $Rs16,577$.

Answer 1

$P=13,700$

Rate $=R$

$T=3$

$A=16,577$

$A=P(1+\frac{RT}{100})$

$\Rightarrow 16577=13,700(1+\frac{R\times 3}{100})$

$\Rightarrow \frac{16577}{13700}=1+\frac{3R}{100}$

$\Rightarrow 1.21=1+\frac{3R}{100}$

Hence, Rate $=7$%