Calculate the value five year of a deposit of us $1000 made today if the interest rate is 8%

Question

Raima took a loan of Rs. 1500 with simple interest for as many years as the rate of interest. If she paid Rs. 960 as interest at the end of the loan period, what was the rate of interest?

Answer 1

Assuming the interest rate is compounding -

P = 1000
r = 8
T= 5
M = ?

M = P (1 + r/100)^T
= 1000 (1 + 8/100) ^ 5
=>
M = 1469