Question

a certain sum amount to rs 4840 in 2 years and to rs 5324 in 3 years at compound interest.find the rate and the sum​

Answer 1

Answer:

Let the principal be Rs.P and rate of interest p.a. = r% Then

P(1+

100

r

)

2

=4840...........(i) and P(1+

100

r

)

3

=5324...........(ii)

⇒

4840

5324

=

(1+r/100)

2

(1+r/100)

3

⇒1+

100

r

=

1210

1331

⇒

100

r

=

1210

1331

−1=

1210

121

=

10

1

⇒r=

10

1

×100=10%p.a.