a certain sum of money at compound interest becomes rupees 7396 in 2 year and rupees 7950.70 in 3 year .find rate of interest

Question

a certain sum of money at compound interest becomes rupees 7396 in
2 year and rupees 7950 70 in 3 year find rate of interest

Varun.Rawat · Accepted Answer

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