Question

A certain sum of money, placed out at compound interest amounts to . 6272 in 2 years

and to. 7024.64 in 3 years. Find the rate of interest and the sum of money.​

Answer 1

Answer:

A certain sum of money, placed out at compound interest amounts to 6272 in 2 years and to 7024.64 in 3 years.

$\frac{7024.64}{6272} = (1 + \frac{r}{100} )$

$1.12 - 1 = \frac{r}{100}$

r = 12 %

Calculate:

Principal (P)

Where: P = A / (1 + r/n)^nt

Total P+I (A): $ 6,272.00

Rate (R): % 12

Compound (n): Compounding Annually (1/Yr)

Time (t in years): 2

Answer:

P = $ 5,000.00