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Rs. 8000 invested at compound interest, gives Rs. 1261 as interest after 3 years. The rate of interest per annum is:

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To find the rate of interest per annum when Rs. 8000 is invested at compound interest and yields Rs. 1261 as interest after 3 years, we can follow these steps: ### Step 1: Determine the Total Amount First, we need to calculate the total amount after 3 years. The total amount (A) is the sum of the principal (P) and the compound interest (CI). \[ A = P + CI \] Given: - Principal (P) = Rs. 8000 - Compound Interest (CI) = Rs. 1261 Substituting the values: \[ A = 8000 + 1261 = 9261 \] ### Step 2: Use the Compound Interest Formula The formula for compound interest is given by: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where: - A = Total amount after time T - P = Principal amount - R = Rate of interest per annum - T = Time in years Substituting the known values into the formula: \[ 9261 = 8000 \left(1 + \frac{R}{100}\right)^3 \] ### Step 3: Isolate the Term with R To isolate the term with R, we first divide both sides by 8000: \[ \frac{9261}{8000} = \left(1 + \frac{R}{100}\right)^3 \] Calculating the left side: \[ 1.157625 = \left(1 + \frac{R}{100}\right)^3 \] ### Step 4: Take the Cube Root Next, we take the cube root of both sides to solve for \(1 + \frac{R}{100}\): \[ 1 + \frac{R}{100} = \sqrt[3]{1.157625} \] Calculating the cube root: \[ 1 + \frac{R}{100} \approx 1.05 \] ### Step 5: Solve for R Now, we can solve for R: \[ \frac{R}{100} = 1.05 - 1 \] \[ \frac{R}{100} = 0.05 \] \[ R = 0.05 \times 100 = 5 \] ### Conclusion The rate of interest per annum is: \[ \boxed{5\%} \] ---
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