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Cpt compound interest help please

CPT 1334 views 1 replies

Find the rate percent per annum if Rs.200000 amount to Rs.231525 in 1½ year interest being compounded half-yearly.

231525 200000 = (1 + i) 3 

1.157625 = (1 + i) 3 

(1.05) 3 = (1 + i) 3 

i = 0.05

please explain the above steps.... how to get 1.05 .... how to take root or to divide.... please exppalin

 

Replies (1)

231525/200000 = (1+i)^3

 or, (1.157625)^1/3-1 = i

or, 1.0500 -1 = i

or, i = .0500 * 100 = 5 %

Note: STEPS                                                                                            

1) Do Square root of 1.157625 [12 TIMES Simaltaneously]

Results will be, from above calculation  1.00003573561

2) Substract 1 from above calculation

Results will be, from above calculation  0.00003573561

3) Multiple by 1 and then divide by 3 { due to 1/3 in power}

Results will be, from above calculation 0.00001191187

4) Now add 1 to above results

Results will be 1.00001191187

5) Finally now do ' *= ' {MULTIPLY EQUALTO} [12 TIMES Simaltaneously]

i.e PRESS Multiply & Equalto Buttom respectively for 12 times continuously

Results will be  1.05000057932

6) Substract 1 from above result & multiply by 100 respectively

i.e. (1.050000-1 )*100 = 5.00000% [ ANSWER]

 


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