Question

The compound interest of a sum of money in 1 year and 2 year are 450 and 945 respectively.Find the rate of interest compounded yearly and the sum .

Answer 1

Answer:

Step-by-step explanation:

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. 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.