Question

A certain sum of money amounts to 4500 in first year; to 5175 in second year and to 6210 in third year. Find the rate of interest for the (1) second year (2) third year

Answer 1

Answers: 1. 15% 2. 20%.

Answer 2

Answer:

1) 15%

2) 20%

Step-by-step explanation:

The principal for 2nd year = amount of 1st year = ₹4500

Interest obtained in second year = amount of 1st year = ₹ 5175 - ₹ 4500 = ₹ 675

I = PRT / 100

$675 = \frac{4500 \times r \times 1}{100}$

R = 15% for the second year

For third year principal is ₹6210

I = 6210 - 5175 = ₹ 1035

I = PRT/100

$1035 = \frac{5175 \times r \times 1}{10}$

R = 20% for third year