Question

A sum of 1536 put at compound interest amount to 1632 in one year how much would it amount in the second year

Answer 1

for first year , simple interest and compound internet are same

so , 1536 principal changes to 1632 in one year

means , interest = 1632 - 1536

= 96 rs

so , for 1536 --------- 96

for 100 -------- ??

rate = 96 × 100 / 1536

rate = 9600 / 1536

rate = 6.25

so now for second year with 6.25 rate , for 1632 rs


interest = 1632 × 6.25 × 1 /100

interest = 1632 / 16

interest = 102 rs

so Amount = 1632 + 102

Amount = 1734 rs