1. If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 1,800, and Rs 1,926 respectively, what is the rate of interest?
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By: anil on 05 May 2019 01.45 am
Amount received at the end of 2nd yr = P$$(1+frac{R}{100})^{2}$$ = 1800 -------(1) Amount received at the end of 3rd yr = P$$(1+frac{R}{100})^{3}$$ = 1926 -------(2)
divide (2) with (1) $$Rightarrowfrac{P(1+frac{R}{100})^{3}}{P(1+frac{R}{100})^{2}} = frac{1926}{1800}$$ $$Rightarrow 1+frac{R}{100}$$ = $$frac{1926}{1800}$$ $$Rightarrow frac{R}{100}$$ = $$frac{1926}{1800}-1$$
$$Rightarrow frac{R}{100}$$ = $$frac{1926-1800}{1800}$$
$$Rightarrow frac{R}{100}$$ = $$frac{126}{1800}$$
$$Rightarrow frac{R}{100}$$ = $$frac{7}{100}$$
$$Rightarrow R = 7$$% So the answer is option B.
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divide (2) with (1) $$Rightarrowfrac{P(1+frac{R}{100})^{3}}{P(1+frac{R}{100})^{2}} = frac{1926}{1800}$$ $$Rightarrow 1+frac{R}{100}$$ = $$frac{1926}{1800}$$ $$Rightarrow frac{R}{100}$$ = $$frac{1926}{1800}-1$$
$$Rightarrow frac{R}{100}$$ = $$frac{1926-1800}{1800}$$
$$Rightarrow frac{R}{100}$$ = $$frac{126}{1800}$$
$$Rightarrow frac{R}{100}$$ = $$frac{7}{100}$$
$$Rightarrow R = 7$$% So the answer is option B.