Question

A certain sum of money amounts to rs 1344 in 3 years and rs 1440 in 5 years. find the sum and rate of interest

Answer 1

Let the amount be p and rate be r
So according to the question,
1344=p(1+1/r)^3.........1
1440=p(1+1/r)^5........2
dividing 2 by 1
1440/1344=(1+1/r)^2
(1+r)^2= 1440/1344=1.0743

1+r = 1.035

rate of interest is = 3.5%

x* (1.035)^3=1344

x*1.1087=1344

x=1344/1.1087=1212.230

sum is 1212.230

rate of interest = 3.5%