· A certain sum of money at compound interest becomes 7396 in 2 years and 7950.70 in 3 years. Find the
rate of interest.
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· A certain sum of money at compound interest becomes 7396 in 2 years and 7950.70 in 3 years. Find the
rate of interest.
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ANSWER:-
Compound interest in two years
Amount = P (1 + R/100)^t
7396 = P (1 + R/100)²(1)
Compound of interest in three years
Amount = P (1 + R/100)^t
7396 = P (1 + R/100)²(2)
Dividing (2) by (1) we get
1.075 = 1 + R/100
R/100 = 0.075
R = 7.5%
Answer:
7.5
Step-by-step explanation:
7950.70/7396=1.075