Question

Asum of money amounts to rs.10648 in 3 yearsand rs.9680 in 2 years.the rate of interest is

Answer 1

Given Compounded amount = C.A = 10648

in Time= n = 3 years...

Also C.A = 9680 in Time = n = 2 years..

We know that

C.A = P(1+i)^n

Where P = Principal Amount , i = Rate of Interest Per annum , n = number of years/periods


By substituting above information..

we will get...

9680 = P(1+i)^2 ........ Equation (1)


10468 = P(1+i)^3 ....... Equation (2)

Now Divide (2) with (1)... (2)÷ (1)

10468/9680 = P(1+i)^3/ P(1+i)^2

1.0814 = (1+i)

1.0814 - 1 = i

0.0814 = i

so i = Rate of Interest Per annum= 0.0814 or 8.14%