Curtis invested a certain sum of money in scheme A which offers compou

1.	Curtis invested a certain sum of money in scheme A which offers compoundinterest (compounded annually) at a certain rate of interest (p.c.p.a). If the suminvested by him amounts to Rs. 13,680/- after two years and to Rs. 16.416/-after 3 years, what is the rate of interest (p.c.p.a.) offered by scheme A ?
Answer» 3 yers of 5112 of intrest pc.offered. by.sime Let principal amount = P,Rate of Interest = R For compound interestA = P(1 + R/100)^n When,n = 2, A = 1368013680 = P(1 + R/100)^2.....(1) n = 3, A = 1641616416 = P(1 + R/100)^3..... (2) Divide eq(1) and eq(2) 16416/13680 = (1 + R/100)(16416 - 13680)/13680 = R/1002736/1368 = R/10R = 27360/1368R = 20 Therefore, Rate of Interest is 20 % per annum

Curtis invested a certain sum of money in scheme A which offers compoundinterest (compounded annually) at a certain rate of interest (p.c.p.a). If the suminvested by him amounts to Rs. 13,680/- after two years and to Rs. 16.416/-after 3 years, what is the rate of interest (p.c.p.a.) offered by scheme A ?

Answer»

3 yers of 5112 of intrest pc.offered. by.sime

Let principal amount = P,Rate of Interest = R

For compound interestA = P(1 + R/100)^n

When,n = 2, A = 1368013680 = P(1 + R/100)^2.....(1)

n = 3, A = 1641616416 = P(1 + R/100)^3..... (2)

Divide eq(1) and eq(2)

16416/13680 = (1 + R/100)(16416 - 13680)/13680 = R/1002736/1368 = R/10R = 27360/1368R = 20

Therefore, Rate of Interest is 20 % per annum