A certain loan amount earns and interest of rupees 2880 in the second year and interest of rupees 3456 in the third year under compound interest, interest being compounded annually. How much interest does it occur in the first year in rupees?
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Answer:
2400
Step-by-step explanation:
A certain loan amount earns and interest of rupees 2880 in the second year and interest of rupees 3456 in the third year under compound interest, interest being compounded annually. How much interest does it occur in the first year in rupees?
interest of rupees 2880 in the second year
interest of rupees 3456 in the third year
=> Extra interest in third Year = 3456 - 2880 = 576 is because of Rs 2880
576 = 2880 * 1 * r/100
=> r = 20 %
Let say Amount = P
Internet for 1st year = P * 20 * 1/100 = P/5
Interest for 2nd Year = Inetrest in 2 year - Interest in 1 year
= (P (1 + r/100)² - P) - (P(1 + r/100) - P)
= P * 1.2² - P * 1.2
=> 0.24P
=> 0.24P = 2880
=> P = 12000
Interest in first year = P/5 = 12000/5 = 2400
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