Question

*For the principal of Rs 1500 the interest for the second year is Rs 96 more than that of first year.What should be the rate of compound interest?*

1️⃣ 6 %
2️⃣ 12 %
3️⃣ 8 %
4️⃣ can't say for sure​

Answer 1

Answer:

Step-by-step explanation:

2

Answer 2

Step-by-step solution:

Let r be the rate of compound interest per annum.

For the first year,

• Principal $=Rs.\:1500$

• Then amount
• $=Rs.\:1500(1+\frac{r}{100})$
• $=Rs.\:1500+15r$

• So interest
• $=Rs.\:1500+15r-1500$
• $=Rs.\:15r$

For the second year,

• Principal $=Rs.\:1500+15r$

• Then, amount
• $=Rs.\:(1500+15r)(1+\frac{r}{100})$
• $=Rs.\:1500+30r+\frac{3}{20}r^{2}$

• So interest
• $=Rs.\:1500+30r+\frac{3}{20}r^{2}-1500-15r$
• $=Rs.\:15r+\frac{3}{20}r^{2}$

By the given condition,

• $\quad 15r+\frac{3r^{2}}{20}-15r=96$

• $\Rightarrow \frac{3}{20}r^{2}=96$

• $\Rightarrow r^{2}=640$

• $\Rightarrow r=25.3$

∴ the rate of compound interest is 25.3% per annum.

Answer: option 4️⃣ can't say for sure