Question

On a sum of Rs. 6875, find difference between second year and third year C. If rate of interest is 20% per Annum?​

Answer 1

Answer:

Let principal = P , rate = R % and time = 1 year

A= P(1+r/100)^t

6875 = P (1+r/100)^1

6875 = P( 1+r/100) —- 1

8318.75 = P (1+r/100)^ 3——-2

Divide equation 2 by equation 1 , we get

8318.75/ 6875 = P(1+r/ 100)^ 3/ P (1+r/100)

831875/687500 = (1+r/100)^2

166375/137500= (1+r/100)^2

33275/27500 = (1+r/100)^2

6655/5500= (1+r/100)^2

1331/1100= (1+r/100)^2

121/100 = (1+r/100)^2

(11/10)^2 = (1+r/100)^2

1+r/100 = 11/10

r/100 = 11/10 - 1= 1/10

r = 100/10 = 10 %

6875= P(1+10/100)

6875 = P(1+1/10)

6875= P(11/10)

P= 6875 x 10 /11

P = 625 x 10 = 6250