Question

On a certain sum of money, lent out at C.I., interests for first, second and third
years are ₹1,500; ₹1,725 and ₹2,070 respectively. Find the rate of interest for
the rate of interest for the (i) second year (ii) third year.

Answer 1

According to the question,

P(1 + i) = 1500 ....(i)

and P(1 + i)2 = 1725  ....(ii)

Dividing (ii) by (i) we get  

i = 15%

Find P using (i) we get P = Rs. 1304.34

Now find interest for second and third year.