Question

the simple interest on a certain sum for 3 years is 225 and the compound interest on the same sum at the same rate for 2 years is 153 . find the rate of interest and the principal​

Answer 1

step by step instructions

hope this helps you

Answer 2

Answer:

interest rate=4%

P=1875

Step-by-step explanation:

SI(3 years)=225

SI/year=75

let the interest rate be x

now CI(2 years)=153

CI basically means interest on interest.

CI=2*SI + ( interest on SI) = 153

2*75 + [(x * 75) / 100] = 153

(x / 100) * 75 = 3

x = 4%

since SI = P * R * T / 100 ( R=interest rate T = time)

P = (SI*100)/(R*T)

P= (225 * 100) / (4 * 1)

P = 22500 / 4

P = 1875