A certain sum of money invested on compound interest amounts to 2420 shillings in two years and 2662 in 3 years. Find the rate of interest and the sum invested
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Answer:
Step-by-step explanation:
Last year interest =2662−2420= Rs.242
Difference between SI and CI for 2 years, Difference =P[ 100/R ] 2
Rate %=
2420×1 /242×100 =10%
Answered by
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Answer:
R= 10%
In calculation of Compound interest
Principal amount for next period is equal to principal amount of this year + interest generated in this period
If after 2 years amount of money is 2420
This will be principal for next year
For third year
Amount = 2420×(1+ R/100)×1
2662 = 2420 + 2420×R/100
242 = 24.2 × R
R = 10%
Alternatively
P×(1 + R/100)^2 = 2420
P×(1 + R/100)^3 = 2662
Devide both of these equation to solve for answer
Step-by-step explanation:
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