Question

The sum of money is borrowed at compound interest payable annually . The interests for the 2ndand 3rdyear are 330 and 363 respectively . Find the sum

Answer 1

Answer:

It is given that 

Interest for the first year = 225 

Interest for the second year = 240

So the difference = 240 - 225 = 15

Here 15 is the interest on 225 for 1 year 

(i) Rate = (SI×100)/(P×t)

Substituting the values 

=(15×100)/(225×1)

So we get 

=320

=632% p.a.

(ii) We know that 

Sum=(SI×100)/(R×t)

Substituting the values 

=(225×100)/(20/3×1)

It can be written as 

=(225×100×3)/(20×1)

So we get 

= 225×15

=3375

(iii) Here 

AMount after second year = 225 + 240 + 3375 = 3840

So the interest for the third year = Prt/100 

Substituting the values 

=(3840×20×1)/(100×3)

=256