Question

A certain sum of money becomes rs.750 in 2 years and becomes rs.873 in 3.5 years.find the sum and rate of interest.

Answer 1

750=P+2I....(1)
873=P+3.5I...(2)
(2)-(1)=123=1.5I
I=82

for 2 years I=164
P+164=750
P=586

then 164=586*2*R/100
R=164*100/(586*2)
r=13.99%

Answer 2

The given conditions are certain sum of money becomes rs.750 in 2 years and becomes rs.873 in 3.5 years. We can take the sum of money as P.

The equations are written as 750=P+2I and 873=P+3.5I.

(2)-(1)=123=1.5I

The value of I is 82

For two years, the value of I is 164

P+164=750

P=586

We need to follow the similar procedures to find the value of R.

The equation is given below, which is 164=586*2*R/100

R=164*100/(586*2)

r=13.99%