a certain sum of money at compound interest becomes rupees 7396 in 2 years and rupees 7950.70 in 3 years find the rate interest
Answers
◀ HEY THERE◀
◀ Question: ◀
→ A certain sum of money at compound interest becomes rupees 7396 in 2 years and rupees 7950.70 in three years. Find the rate of interest ?
◀ Method of Solution:◀
→ Given: Amount = Rs 7396
→ Given, Certain sum of money at compound interest becomes rupees 7396 in 2 years.
So,→ Find the Compound Interest in 2 Years ?
Using Compound Interest Formula!
→ Amount = P(1+R/100)^t
7396 = P(1+R/100)² -------(A)
Now, →
Given Amounts = 7950.70
Given, Certain sum of money at compound interest becomes rupees 7950.70 in 3 years.
→ Amount = P(1+R/100)^t
⇒ 7950.70 = p(1+R/100)³ -------(B)
→ Solving the Equation by Dividing!→
Dividing (B) by (A):
⇒ 7950.70 = p(1+R/100)³ ÷ 7396 = P(1+R/100)²
→ Dividing rule ! ( Divide LHS to LHS) and RHS to RHS →
⇒ 7950.70 = p(1+R/100)³ ÷ 7396 = P(1+R/100)²
⇒ 7950.70÷7396= p(1+R/100)³÷P(1+R/100)²
⇒ 1.075 = (1+R/100)
⇒ 1.075-1 = R/100
⇒0.075 = R/100
•°• R= 100×0.075
•°• ⇒ Rate = 7.5% →
◀ Hence, Rate of interest is 7.5%◀