A certain principal invested at compound interest payable yearly amount to Rs. 10816.00 in 3 years and Rs. 11248.64 in 4 years. What is the rate of interest?
4%
To determine the rate of interest for the compounded investment, let's analyze the information given. The amount increases from Rs. 10816 in 3 years to Rs. 11248.64 in 4 years.
We will use the compound interest formula:
\(A = P(1 + r)^n\)
where \(A\) is the amount, \(P\) is the principal, \(r\) is the rate of interest per annum, and \(n\) is the number of years.
Given:
- \(A_3 = 10816\) (amount at the end of 3 years)
- \(A_4 = 11248.64\) (amount at the end of 4 years)
Let's find the rate of interest using the relationship between the amounts in consecutive years:
From the formula: \(A_4 = A_3 \times (1 + r)\)
This becomes:
\(11248.64 = 10816 \times (1 + r)\)
Simplifying for \(r\):
\(1 + r = \frac{11248.64}{10816}\)
Calculate the right-hand side:
\(1 + r = 1.04\)
Thus, \(r = 1.04 - 1 = 0.04\), which is equal to \(4\%\).
Hence, the rate of interest is 4%.
Similar Questions
The population of a town increases 5% annually. If its present population is 84,000, what will be its population in 2 years time?
A sum of money doubles at compound interest in 6 years. In how many years will it become 16 times?
A man invests ₹8,000 in a finance company which provides 24% annual compound interest, compounded monthly. Compute the compound interest on the invested amount for 3 months.
Important Questions from Compound Interest
A person borrowed Rs. 10000 on compound interest at the rate of 40 percent per annum. If the interest is compounded half yearly, then what will be the amount to be paid after 1.5 years?
The difference between the compound interest (compounding annually) and the simple interest on a sum of money at the rate of 40 per cent per annum for 2 years is Rs. 2400. What is the amount?
In how many years will a sum of Rs.1875 amount to Rs.2187 at 8 percent p.a. compound interest?
A sum of money has increased by 45% in 9 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
At a certain rate of compound interest a certain sum amounts to Rs. 64800 in 4 years and Rs. 93312 in 6 years. What is the compound interest earned in fifth year?
