document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1141819>Question 1141819</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A man invest rupees 10000 for 3 years at a certain rate of interest compounded annually at the end of one year it amounts to 11200 rupees calculate the rate of interest per annum </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #762454 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=762454\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> at the end of one year it is equal to 11200 from 10000.\r<BR>\n" );
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document.write( "the interest rate for that one year is 11200 / 10000 = 1.12 - 1 = .12 * 100 = 12%.\r<BR>\n" );
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document.write( "since the investment is for 3 years, then the interest rate of 12% per year is applied 3 times to the remaining balance after each year.\r<BR>\n" );
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document.write( "you start with 10000<BR>\n" );
document.write( "at the end of one year you have 10000 * 1.12 = 11200.<BR>\n" );
document.write( "at the end of two years, you have 11200 * 1.12 = 12544.<BR>\n" );
document.write( "at the end of three years, you have 12544 * 1.12 = 14049.28.\r<BR>\n" );
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document.write( "the formula used is f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "the time periods are in years for this problem.\r<BR>\n" );
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document.write( "formula becomes f = 10000 * (1 + .12) ^ 3\r<BR>\n" );
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document.write( "solve for f to get f = 14049.28.\r<BR>\n" );
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