Question

At what rate per cent will Rs. 12,000 yield Rs. 1,891.50 as compound interest in 3 years?

Answer 1

$P=12000Rs$. ,$C.I=1891.50Rs$. ,$T=3years$

$A=P+C.I.$

$A=12000+1891.50=13891.50Rs.$

$13891.50=12000(1+\frac{R}{100}{)}^3$

$(1+\frac{R}{100}{)}^3=\frac{13891.50}{12000}$

$1+\frac{R}{100}=\frac{21}{20}$

$\frac{R}{100}=\frac{21}{20}-1$

$\frac{R}{100}=\frac{1}{20}$

$20R=100$

$R=5$%