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unit-14-commercial-mathematics

Unit-14 Commercial Mathematics

In this unit you will learn about profit and loss, various taxes, shares and debentures.

Find the rate of interest at which Rs.8000 amounts to Rs.9261 in 3 years, if the interest is compounded annually.




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Learning Pundits Content Team

Written on Jun 25, 2019 11:44:52 AM

P = Rs.8000

        A = Rs.9261

         n = 3

Using formula (2), we get

       A = P(1 + r)n

 9261 = 8000(1 + r)3

9261/8000 = (1 + r)3

    (21/20)3 = (1 + r)3

(1 + 1/20)3 = (1 + r)3

r = 1/20 = 0.05 = 5% per annum