Question

A fixed sum invested received Rs. 1600 in the 1st year and Rs. 1728 in the 2nd year as compound interest. The rate of interest compounded annually is ​

Answer 1

Answer:

Simple Interest, S.I. = Rs. 1260 = 100PR×2 =  50PR          -(i)

Compound Interest, C.I. = Amount(A) - Principle(P)

=P(1+100R)2 - P = PR(R/10000+1/50)=Rs.1323         -(ii)

Dividing (ii) by (I),

200R+1 = 12601323

⇒Rate,R=10%p.a.

Now, 100PRT=1260

⇒ 100P×10×2=1260

⇒ Principal or Sum , P = Rs.6,300