Question

A certain sum of money at the compound interest becomes rupees 7396 in 2 years and 7950. 70 in 3 years find the rate of interest

Answer 1

Amount in 2 years= Rs 7396.00  

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Interest for 3rd year =Rs 554.70  

Principal for 3rd year=Rs 7396  

Time = 1year  

Rate = (Interest *100)/ Principal*Time  

= 554.70*100 /7396* 1  

= 55470/ 7396 = 7.5%  

Let sum of money = x  

Amount = Rs 7396  

Time = 2 years  

then Amount = Principal(1+R/100)^T  

7396 = x (1+7.5/100)^2  

x =Rs 7396 /(43/40)^2  

=Rs 7396 *40*40 /43*43  

=Rs 6400 ANS.