Question

Compound interest of 2 years is 272 compound interest on same sum for 3 years is 434 find rate

Answer 1

Answer:

136

Step-by-step explanation:

Answer 2

For first two year interest =P[(1+R/100)^2-1]=272  -------------------- (1)

For first three year interest=P[(1+R/100)^3-1]=434  ------------------- (2)

On dividing Equation (1) by (2), we get

(1+R/100)^2-1)/(1+R/100)^3-1)=272/434

Let (1+R/100)=x ......(3)

(X^2-1)/(x^3-1)=136/217

(x+1)/(x^2+x+1)=136/217

136x^2-81x-81=0

After solving x will be 1.1248

By putting this value in eq (3) we get

R=12.48 approximately 12.50.