permbhattarai69
Answered

At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Get quick and reliable solutions to your questions from a community of experienced professionals on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

a) At what percent rate of compound interest per annum will the compound interest on Rs 1,25,000 be Rs 91,000 in 3 years?​

Sagot :

The rate of compounding on the investment is 20%.

What is the rate of compounding?
When an amount compounds annually, it means that both the amount invested and the interest accrued increases in value once a year.

The formula that can be used to determine the rate of compounding is: (FV / PV)^(1 /n)

Where:

  • FV = future value = 125,000 + 91,000 = 216,000
  • PV = present value = 125000
  • n = number of years - 3

(216,000 / 125000)^ (1 / 3) - 1 = 20%

To learn more about future value, please check: https://brainly.com/question/18760477

#SPJ1

We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.