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The compound interest on a certain sum for first two successive years are Rs. 100 and Rs. 172 respectively. Find the rate of interest.1). 55%2). 10%3). 63%4). 72% |
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Answer» Let the SUM of money = Rs. x N = 1 year each Compound interest for first year = C1 = x [1 + r/100]1 – x = x [r/100]---(1) ∴ Amount obtained from first year = x [1 + r/100]1 Compound interest for second year C2 =x [1 + r/100]1 [1 + r/100]1 - x[1 + r/100]1 = x[1 + r/100]1 [r/100]---(2) From 1 and 2, C1 = Rs. 100 ⇒ x [r/100] = Rs. 100---(3) C2 = Rs. 172 x (r/100) × [1 + r/100] = Rs. 172 From 3, 100 × [1 + r/100] = 172 ⇒ 1 + (r/100) = 1.72 ⇒ r = 72% THUS, the rate is 72% p.a. |
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