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The compound interest on 800 at a certain rate for two years is 65.28. What would be the approximate compound interest on the same amount for three years?

 Jun 3, 2015

Best Answer 

 #1
avatar+118696 
+5

 

 

865.28=800(1+r)2865.28/800=(1+r)2865.28/800=1+r865.28/8001=r

 

865.288001=125=0.04    

 

so the rate is 4% per annum

 

Amount after 3 years

 

FV= 800(1.04)^3

800×(1.04)3=899.8912

 

The compound interest after 3 years will be  $99.89

 

899.89800=9989100=99.89       

.
 Jun 3, 2015
 #1
avatar+118696 
+5
Best Answer

 

 

865.28=800(1+r)2865.28/800=(1+r)2865.28/800=1+r865.28/8001=r

 

865.288001=125=0.04    

 

so the rate is 4% per annum

 

Amount after 3 years

 

FV= 800(1.04)^3

800×(1.04)3=899.8912

 

The compound interest after 3 years will be  $99.89

 

899.89800=9989100=99.89       

Melody Jun 3, 2015

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