Question

The Compound Interest calculated
on a certain Sum of money for the second year is Rs.770 and for the
third year it is Rs.847. Calculate the rate of interest and the Sum
of money.​

Answer 1

Answer:

∵ Difference between the C.I of two successive years=Rs.880−968=Rs.88

∴Rate of interest=

P×T

100×I

=

880×1

100×88

=10%

Let the sum of money=Rs.100

∴interest for one year=10% of 100=

100

10

×100=Rs.10

Amount after one year=100+10=Rs.110

∴Interest foe second year=10% of 110=

100

10

×110=Rs.11

When the interest for second year is rs .11 then sum=Rs.100

When the interest for second year is Rs.880 then sum=

11

100

×880=Rs.8000