Question

the yearly compound interest on a sum of money in 1 year and 2 year are Rs 1800 and rs 2816 respectively. calculate the rate of interest and principal.

Answer 1

Answer:

r=56.4%

P=1150.9

Step-by-step explanation:

1 year compound interest

A=P(1+r/100)^n

1800=P(1+r/100)¹ (1)

similarly

2years compound interest

2816=P(1+r/100)² (2)

Now devide (2) by (1)

2816/1800=P(1+r/100)²/P(1+r/100)¹

352/225=1+r/100

352/225=100+r)/100

352*100=225*100+225r

35200-22500=225r

12700=225r

r=12700/225=56.4%

Now

A=P(1+r/100)^n

1800=P(1+56.4/100)¹

180000=P(156.4)

P=180000/156.4=1800000/1564=1150.90

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