CI in 2yr is Rs. 1600 and in 3 yrs it will be Rs. 1700. Find the rate of interest.
Answers
Given :- CI in 2 year is Rs. 1600 and in 3 years it will be Rs. 1700. Find the rate of interest. ?
Solution :-
Let us assume that, rate of interest is R% per annum and Principal is Rs.P .
then,
→ CI for 2 years = P[{1 + (R/100)}² - 1] = 1600
and,
→ CI for 3 years = P[{1 + (R/100)}³ - 1] = 1700
Let us assume that, {1 + (R/100)} = x .
So,
→ (2 year CI / 3 year CI) = (x² - 1) / (x³ - 1) = 1600 / 1700
→ (x - 1)(x + 1)/(x - 1)(x² + x + 1) = 16/17
→ (x + 1)/(x² + x + 1) = 16/17
→ 17x + 17 = 16x² + 16x + 16
→ 16x² - x - 1 = 0
Solving this quadratic equation now, we get,
→ x = 0.283 and (-0.220)
taking x = 0.283 , we get,
→ 1 + (R/100) = 0.283
→ (R/100) = 0.283 - 1
→ (R/100) = (-0.717)
→ R = (-71.7) %
and, taking x = (-0.220) , we get,
→ 1 + (R/100) = - 0.220
→ (R/100) = - 0.220 - 1
→ R/100 = -1.220
→ R = (-122) %
Since both values of R is in negative . Data of question is incorrect.
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