Question

The compound interest for 2 and 3 year on certain principal at certain rate of interest are 8820 and 9261 respectively. Find the rate of interest and the principle.​

Answer 1

Step-by-step explanation:

We know formula for compound interest :

Amount = P , Here P = Principle amount , r = Rate of interest and t = Time ( In years )

Now from given conditions we get

Now we divide equation 2 by equation 1 and get

Substitute that value in equation 1 we get

Therefore,

Rate of interest = 5 % and principle amount = Rs 8000 ( Ans )

Hope this information will clear your doubts about topic.