Question

At what interest rate will P20,000 accumulate to P26,080 in 8 years time?

Answer 1

Rate of interest = 3.8%

Explanation:

Given:

Initial amount p = 20,000

Final amount p + I = 26,080

Number of year t = 8 year

Find:

Rate of interest

Computation:

I = 26,080 - 20,000

I = 6,080

I = PRT

6,080 = (20,0000)(r)(8)

Rate of interest = 3.8%