Question

a sum of money put at11% per annum amount to 4491 in2 years 3 months what will it amount to in 3 years at the same rate

Answer 1

Simple interest or compound interest?

at simple interest,

let the original be $x
change our times to months ---> 2 yrs, 3 months = 27 months
interest = x(.11)(27/24) = 99x/800

x+99x/800 = 4491
x(1 + 99/800)= 4491
x = 3996.44

in 3 years:
amount = 3996.44 + 3996.44(.11)(3)
= 5315.27


at compound interest:
original amount --- y
y(1.11)^(27/12) = 4491
y = 3551.13
after 3 years:
amount = 3551.13(1.11)^3
= 4856.63