Question

In what rate per annum will a sum of Rs.6750 amount to Rs.8192 in 3years, compounded annually.

Answer 1

$P=6750$

Rate $=R$(let)

$A=8192$

$T=3$

$A=P{(1+\frac{R}{100})}^T$

$\Rightarrow 8192=6750{(1+\frac{R}{100})}^3$

$\Rightarrow \frac{8192}{6750}={(1+\frac{R}{100})}^3$

$\Rightarrow \frac{4096}{3375}={(1+\frac{R}{100})}^3$

$\Rightarrow {\left(\frac{16}{15}\right)}^3={(1+\frac{R}{100})}^3$

$\Rightarrow \frac{16}{15}=1+\frac{R}{100}$

$\Rightarrow \frac{16}{15}-1=\frac{R}{100}$

$\Rightarrow R=\frac{1}{15}\times 100$%

$=6\frac{2}{3}$%