Question

please solve the problem​

Answer 1

Answer:

Let r% be the rate of interest compounded annually.

A=P(1+

100

r

)

t

where A is the amount, P is the principal amount, t is time (in years).

Therefore, after t=2 years,

7396=P(1+

100

r

)

2

........(i)

After t=3 years,

7950.70=P(1+

100

r

)

3

........(ii)

Dividing equation (ii) by (i), we get,

7396

7950.70

=

P(1+

100

r

)

2

P(1+

100

r

)

3

=(1+

100

r

)

=>

7396

7950.70

=(1+

100

r

)

=>r=7.5%

Therefore, rate of interest is 7.5% compounded annually.