Question

Mr Shah borrowed a certain sum of money. After
2 years, the amount to be repaid was 8,38,500 and
at the end of 3 years the amount to be repaid was
9,32,750. How much money had Mr Shah borrowed
and at what rate of simple interest?​

Answer 1

Step-by-step explanation:

let

x

be the amount of money initially borrowed by Mr. Shah

principal =

x

rate =

r

time =

t

we know that

a

m

o

u

n

t

=

p

r

i

n

c

i

p

a

l

∗

(

1

+

r

a

t

e

∗

t

i

m

e

)

at 2 years

838500

=

x

(

1

+

2

r

)

−

−

−

−

−

−

−

a

at 3 years

932750

=

x

(

1

+

3

r

)

−

−

−

−

−

−

−

b

dividing

b

by

a

1

+

3

r

1

+

2

r

=

1.1124

1

+

3

r

=

1.1124

+

2.2248

r

r

=

0.1124

0.7752

solving we get

r

=

0.14499

and substituting for

r

in

a

we get

x

=

650

,

010.07767