Question

A sum of money lent at compound interest amounts to Rs. 1210 in two years and to Rs. 1464.10 in 4 years. Find the rate of interest.​

Answer 1

On solving we get : r = 10%

For the 1st 2 years:

A = Rs. 14520, P = ? and r = 10% and n = 2 years

⇒14520=P(1+ 100 +10)2

⇒P=Rs.12000

∴ Rate of interest 10% and sum = Rs. 12,000

Answer 2

Answer:

Compound interests is calculated by multiplying the initial principal amount by one add the annual interest rate multiplied by the number of compounding periods minus one. The total initial amount of the loan is then minus from the resulting value.

Find :

Find the rate of interest

Given :

A sum of money lent at compound interest amounts to Rs. 1210 in two years and to Rs. 1464.10 in 4 years. Find the rate of interest

Step-by-step explanation:

Interest can be compounded according to any given frequency schedule, from daily to annual. There are standard compounding frequency schedules that are typically used for financial instruments.

A commonly used folding schedule for bank savings accounts is daily. Daily, monthly or semi-annual compounding frequency schedules are typical for a certificate of deposit (CD); for money market accounts it is often daily. For home mortgages, home equity loans, personal business loans, or credit card accounts, the most commonly used compounding plan is monthly.

Amount in 2 years = Rs. 14520

$p {(1 + \frac{r}{100}) }^{2} = 14250 \: ......(1)$

Amount in 4 years = Rs. 17569.20

$p {(1 + \frac{r}{100}) }^{2} = 17569.20 \: ......(2)$

On dividing 2 by 1, we get

$\frac{ {p(1 + \frac{r}{100}) }^{4} }{ {p(1 + \frac{r}{100}) }^{2} } = \frac{17569.20}{14250}$

${(1 + \frac{r}{100} )}^{2} = \frac{121}{100}$

$1 + \frac{r}{100} = \frac{11}{10}$

$r = 10$

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