A certain sum of money at simple interest became rs.7,396 in two years and rs.7950.70 in three years. Find the rate of interest?

Question

A certain sum of money at simple interest became rs.7,396 in two years and rs.7950.70 in three years. Find the rate of interest?

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Katherine 1 month 2021-08-15T08:57:04+00:00 1 Answer 0 views 0

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    2021-08-15T08:58:47+00:00

    Answer:

    Rate of interest = 7.5%

    Step-by-step explanation:

    Given :

    Amount = Rs7396

    Time = 2 years

    Amount for 3rd = Rs7950.70

    Time = 3 years

    We Know That ,

     \sf \: Amount = p \bigg(1 +  \frac{r}{100}  \bigg) ^{n}

    Putting the values on :

     \sf \implies 7396 = p \bigg(1 +  \frac{r}{100}  \bigg)^{n}  \longrightarrow \: eqn \boxed{1}

     \sf \implies \: 7950.70 = p \bigg(1 +  \frac{r}{100}  \bigg) ^{n}  \longrightarrow \: eqn \boxed{2}

    Solving equation 1 and 2.

     \implies \sf \:  \frac{7950.70}{7396} =  \bigg(1 +  \frac{r}{100}   \bigg)

     \sf \implies \: 1.07500 = \bigg(  \frac{1 + r}{100}  \bigg)

     \sf \implies0.075 =  \frac{r}{100}

     \sf \implies \: rate \: of \: interest = 7.5\%

    What you need to know ?

    • What is the formula for amount ?

     \sf \: Amount = p \bigg(1 +  \frac{r}{100}  \bigg) ^{n}

    Where p = principal

    r = rate

    n = time

    • What is compound interest then ?

    CI = Amount – Principal

    • Well , then what is simple interest ?

    SI = p×r×t / 100

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