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.

Answer 1

◀ 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%◀

Answer 2

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

7396 = P(1+R/100)² --(1)


Given Amounts = 7950.70




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

7950.70 = p(1+R/100)³ -(2)



Dividing (2) by (1)


7950.70 = p(1+R/100)^3/7396 = P(1+R/100)^2



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



Rate = 7.5%