Question

1. The compound interest, calculated yearly, on a certain sum of money for the second year is Rs. 1089
and for the third year it is Rs.1197.90. Calculate the rate of interest and the sum of money.

Answer 1

solution:-

note-

compound interest in interval of any one time of interval is like a simple interest .

given

amount at the end of second year

= 1089

amount at the end of third year

= 1197.90

so amount of interest

= 1197.90 - 1089

= 108.90

rate= 108.90×100/1089

= 10%

therefore

Answer = 10%