Question

A certain sum of money at compound interest becomes 7396, in two yrs and ₹7950.70 in three yrs. Find the rate of interest.

Answer 1

Answer:

hi

here is your answer

Rate of interest would be 7.5% p.a

Step-by-step explanation:

Let the principal amount be = X and rate of interest be = R

Amount after 2 years = 7396

As the formula for compound interest is

Amount = Principal ${[1 + \frac{R}{100}}]^n$

7396 = X(1 + R/100)^2

also, Amount in 3 years be

7950.70 = X(1+ R/100)^3

Rate of interest would be

$\frac{7950.70 = X(1+ R100)^3}{7396 = X(1 + R100)^2}$

1.075 = 1 + R/100

.075 = R/100

.075 *100 = R

7.5 % = R

hence the rate of interest would be 7.5% p.a

hope it helps

jerri