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At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned?
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At what percentage per annum, will Rs. 10,000 amount to 17280 in three...
To determine the percentage per annum at which Rs. 10,000 will amount to Rs. 17,280 in three years, we need to calculate the compound interest. Compound interest is the interest earned on both the initial principal amount and the accumulated interest from previous periods. The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (Rs. 10,000 in this case)
r = the annual interest rate (to be determined)
n = the number of times that interest is compounded per year
t = the number of years
We need to rearrange the formula to solve for r:
r = (A/P)^(1/(nt)) - 1
Let's plug in the given values:
A = Rs. 17,280
P = Rs. 10,000
t = 3
n = 1 (compounded annually)
Now, we can calculate the interest rate:
r = (17280/10000)^(1/(1*3)) - 1
r = (1.728)^(1/3) - 1
r = 1.144 - 1
r = 0.144
Therefore, the interest rate is 0.144 or 14.4% per annum.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (Rs. 10,000 in this case)
r = the annual interest rate (to be determined)
n = the number of times that interest is compounded per year
t = the number of years
We need to rearrange the formula to solve for r:
r = (A/P)^(1/(nt)) - 1
Let's plug in the given values:
A = Rs. 17,280
P = Rs. 10,000
t = 3
n = 1 (compounded annually)
Now, we can calculate the interest rate:
r = (17280/10000)^(1/(1*3)) - 1
r = (1.728)^(1/3) - 1
r = 1.144 - 1
r = 0.144
Therefore, the interest rate is 0.144 or 14.4% per annum.
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At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned?
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At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned?.
At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At what percentage per annum, will Rs. 10,000 amount to 17280 in three years? (compound interest being reckoned?.
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