Question

A certain sum of money at compound interest becomes Rs 7396 in 2 years and Rs 7950.70 in 3 years.Find the rate of interest?(PLs I REQUEST you for URGENT ans)?

Answer 1

Rate of interest is `Rs 7.5%`

Explanation:

let `x` be the principal amount of money and `r` be the rate of compound interest per anum.

We know the formula for final amount after `t` years is `A=P*(1+r/100)^t :. 7396= P*(1+r/100)^2 (1) and 7950.70= P*(1+r/100)^3 (2)`

Dividing equation (2) by equation (1) we get `7950.70/7396= (P*(1+r/100)^3)/ (P*(1+r/100)^2)=(1+r/100) or 1.075 =1 +r/100 or r/100=0.075 or r=0.075*100= 7.5= Rs 7.5%`per anum [Ans]