a certain sum of money at compound interest become Rs7396 in 2 years and to Rs7950.70 in 3 years find the
rate of interest
Answers
Answered by
44
if compound interest of two consecutive years is given
then rate of interest can be calculated by
=r% of previous years amount =difference between the two amounts
or , r% of 7396=(7950.70-7396)
or r% 7396=554.70
or r=55470/7396=7.5
so rate of interest is 7.5%
then rate of interest can be calculated by
=r% of previous years amount =difference between the two amounts
or , r% of 7396=(7950.70-7396)
or r% 7396=554.70
or r=55470/7396=7.5
so rate of interest is 7.5%
Answered by
37
Sum = P.
P (1+ r)² = 7, 396.00
P (1+r)³ = 7, 950.70
Divide the 2nd equation by the first,
1+ r = 7950.70 ÷ 7396 = 1.075
r = 0.075 or 7.5% , multiplying by 100.
Alternately,
Amount 7,396 becomes 7,950.70 in one year. SImple interest and compound interest are same for 1 year.
So interest = P * r * t
7950.70 - 7396 = 7,396 * r * 1
r = 0.075 or 7.5%
P (1+ r)² = 7, 396.00
P (1+r)³ = 7, 950.70
Divide the 2nd equation by the first,
1+ r = 7950.70 ÷ 7396 = 1.075
r = 0.075 or 7.5% , multiplying by 100.
Alternately,
Amount 7,396 becomes 7,950.70 in one year. SImple interest and compound interest are same for 1 year.
So interest = P * r * t
7950.70 - 7396 = 7,396 * r * 1
r = 0.075 or 7.5%
kvnmurty:
:-)
P (1+r/100)^n
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