Question

The compound interest calculated yearly on a certain sum of money for the second year is Rs 2640 and for the third year is Rs 2904. Find the rate of interest and the original money

Answer 1

Step-by-step explanation:

2nd yr A = ₹2640

3rd yr A = ₹2904

• difference between the two amount is 264₹ which is 10% of the 2nd yr amount

• so rate of interest = 10% p.a

we can calculate the original amount by,

2nd yr will be 10% interest added on it ,so we have to take 2 nd yr amount as 110%

110 = 2640

100 = x

apply cross multiplication method,

x = 2400 original money

principle = ₹ 2400