Question

A certain sum amounts to 16,500 in 1 year and <19,965 in 3 years
compounded annually. Find the rate and the sum.

Answer 1

Answer:

Let sum of money be Rs P and rate of interest = r %

Money after 1 year = Rs. 16,500

Money after 3 years = Rs. 19,965

For 1 year

∴ A = P

$( 1 + \frac{r}{100})^{n}$

16500=P

$( 1 + \frac{r}{100})¹$

...(1)

For 3 years

∴ A = P

$1 \: + (\frac{r}{100}) ^{n}$

⇒19,965 = P

$(1 + (\frac{r}{100}) ^{3}$