Question

A certain sum of money at compound interest becomes. ₹7396 in 2 yrs and ₹ 7950 in 3 yrs .Find the rate of interest.

Answer 1

 2008

Given principal be Rs x and rate of interest be y%
Given it becomes Rs 7396 in 2 years

It is also given that principal Rs x becomes Rs 7950.70 in 3 years.

Divide (2) with (1), we get

∴ y = 7.5
Thus the rate of interest is 7.5%

Answer 2

Amount=P

(1+

R

100

)

t

7396=P(1+

R

100

)

2

...(1)



Compound interest in 3 years:

Amount=P

(1+

R

100

)

t

7950=P(1+

R

100

)

2

...(2)

Dividing (2) by (1), we get

1.075 = 1+

R

100

R

100

=0.075

R=7.5%