Question

Q9. What sum of money at compound interest will amount to rs. 480 at the end of the first year and rs. 576 at the end of the second year?

Answer 1

Answer:

Rs 400

Explanation:

For the first year compound interest is Rs 480.

For the second year compound interest is Rs 576.

Therefore by subtracting Rs 480 from Rs 576 we get the interest earned at the begining of second year.

So, Rs 576-480= Rs 96.

Now , we can find out the rate of interest by applying the formula of Simple Interest for 1 year.

rate of interest= (S.I/ Principal)×100

=(96/ 480)×100

=20%

So, at the begining of first year, the sum of money was Rs (480/120)×100

= Rs 400

So, Rs 400 is the sum of money which will amount to Rs 480 at the end of first year and Rs 576 at the end of second year in compound interest.

Answer 2

Explanation:

hope this will help you