please help me solve this annuity problem!!!! asap !!!?



Ms.reema rao deposited rs.9000 at the end of each year in a bank. after 3 years, the amount accumulated was rs.29,790. find the annual rate of compounding.

I KNOW THE FORMULA IS : A = C/i [ ( 1 + i )n – 1 ]

BUT IM CONFUSED HOW DO I EQUATE THE SUM SINCE WE DO NOT HAVE THE VALUE FOR i.
PLEASE SOLVE AND EXPLAIN HOW WE GET THE RATE OF INTEREST …..THANK YOU !!! c:

please help me solve this annuity problem!!!! asap !!!?
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2 Replies to “please help me solve this annuity problem!!!! asap !!!?”

  1. The formula i use is : Accumulated amount = P (1 + (R/100))^n , where
    P = Principle
    R = Rate
    n = no of calculation
    In this case;
    P=9000
    R= ?
    n=3
    Amount = 29,790

    therefore,
    29790= 9000(1+(R/100))^3
    3.31= (1+(R/100))^3
    1.49030788 = 1+(R/100)
    0.49030788 = R/100
    R = 49.03%


  2. The formula i use is : Accumulated amount = P (1 + (R/100))^n , where
    P = Principle
    R = Rate
    n = no of calculation
    In this case;
    P=9000
    R= ?
    n=3
    Amount = 29,790

    A = P(1+R/100)^n

    so first 9000 was invested for 3 years , second 9000 was invested for 2 years and last 9000 for one year.

    29790 = 9000(1+R/100)^3 + 9000(1+R/100)^2 + 9000(1+R/100)

    solve for R





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