Question

· A certain sum of money at compound interest becomes 7396 in 2 years and 7950.70 in 3 years. Find the
rate of interest.​

Answer 1

ANSWER:-

Compound interest in two years

Amount = P (1 + R/100)^t

7396 = P (1 + R/100)²(1)

Compound of interest in three years

Amount = P (1 + R/100)^t

7396 = P (1 + R/100)²(2)

Dividing (2) by (1) we get

1.075 = 1 + R/100

R/100 = 0.075

R = 7.5%

Answer 2

Answer:

7.5

Step-by-step explanation:

7950.70/7396=1.075