Question

A sum of money becomes Rs 30250 in 2 years and Rs 36602.50 in 4 years. Find the sum and the rate of interest.​

Answer 1

Answer: Sum=Rs.25000, Rate of interest = 10%

Step-by-step explanation:

A=P[1+R/100]^t

where, A=amount

P=Principle amount

t=time period in years

R=rate of interest

From the given question,

30250=P[1+R/100]^2      ------ eq 1

36602.50=P[1+R/100]^4    -------eq 2

eq2/eq1

=> 36602.50/30250=(P[1+R/100]^4)/(P[1+R/100]^2)

=> 1.21= [1+R/100]^2

Taking square root on both sides,

1.1 = 1+R/100

R/100=1.1-1

R=10%

Substituing R=10 in eq1,

30250=P[1+10/100]^2

P = 30250/1.21

P=25000