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)?

1 Answer
Oct 14, 2016

Answer:

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]