A certain sum of money at compound interest becomes Rs 7396 in two years and Rs 7950 70 - Maths - Compound Interest

Question

A certain sum of money at compound interest becomes Rs 7396 in two
years and Rs 7950 70 in three years Find the rate of interest

Abhishek Jha · Accepted Answer

Dear Student,
Here is the solution of your asked query:

Let P be the principal and R be the rate of interest
Amount, A = P1 + R100nWhen Amount is Rs 7396 and Timen is 2 yrs, then7396 = P 1 + R1002      
1When Amount is Rs 7950
70 and Timen is 3 yrs, then7950
70 = P 1 + R1003      
2Dividing 1 by 2, we get7950
707396 = 1 + R100⇒R100 = 7950
707396 - 1⇒R100 = 554
77396⇒R = 554707396=7 5So, Rate = 7
5% p a
Putting the value of R in (i) we get;7396 = P 1 + R1002  ⇒7396=P1 + 7
51002⇒7396=P1 + 152002⇒7396=P×215200×215200⇒P=7396×200×200215×215 = 6400
Therefore sum of money is Rs 6400

A certain sum of money at compound interest becomes Rs. 7396 in two years and Rs. 7950.70 in three years . Find the rate of interest .