Question

A sum is invested at compound interest payable annually. The interest in two successive years was ₹225 & ₹236.25 . The sum is

Answer 1

Solution :-

Amount after 1 year = A  = P (1 +r/100)^1 = P (1 + r/100)

      Interest = P r /100 = 225 

      => P r = 22,500      (1)

Amount after 2 years = B = P(1+r/100)^2  = A (1 + r/100)

Interest during 2nd year =  B - A = A r /100 = 236.25

                      A r = 23625     (2)

   Hence    P (1 + r/100) r = 23625        now substitute Pr from (1)

                  (1 + r/100 ) = 23625 / 22 500

                      r /100 = 0.05

                      r = 5 % per annum

                 P = 22 500 / r = Rs 4500

    amount after 1 year = Rs 4500

amount after 1 year = Rs 4500   amount after 2 nd  year = Rs 4725

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@GauravSaxena01