Question

The compound intrest of a sum of money in 1 year is rs 350 and 2years is 724.50. Find rate of interest compounded and the sum

Answer 1

Please see the attachment

Answer 2

Answer:

Rate = 7% and p = Rs. 5,000

Step-by-step explanation:

Given,

. compound intrest (c.i)1 =Rs.350

Time (T) = 1 years

R = % ?

p = ?

we know,

(c. I) 1. = p [ (1 + R\100) ^T - 1]

350 =p [ (1 + R\100) ^1 - 1]..........{1}

According to the question.

compound intrest (c.i)2 = Rs 724.5

T= 2years

R = ?

(c. I. )2= p [ (1 + R\100) ^T - 1]

724.5 =p [ (1 + R\100) ^2 - 1].............{2}

Now,

dividing equation {2}by {1} we get.

or, 724.5\ 350 =p [ (1 + R\100) ^2 - 1] \p [ (1 + R\100) ^1 - 1]

or,2.07= p[ 1+2R\100+(R\100) ^2 -1] \ p[1 + R\100 - 1]

or,2.07 = R\ 100[ 2 + R\100] \ R \ 100

or,2.07 = 2 + R\ 100

or,2.07 - 2 = R\100

or,0.7 x 100 = R

7% = R

so R = 7%

Now,

given the R value put in equation {1} we get

350 = p [( 1 + 7\ 100 )^1 -1]

350= p [1.07 - 1]

350 = 0.07 x p

350\0.07 = p

;. p = Rs. 5,000

so, the value of rate and principal pries is 7% and Rs. 5,000.