A certain sum of money amounts to 6300 in 2 years and 7875 in 3 years ...
Calculation of Interest Rate:
To find the interest rate, we need to use the formula:
Simple Interest = (Principal x Rate x Time)/100
Step 1: Calculation of Principal Amount:
From the given question, we know that the sum of money amounts to 6300 in 2 years. Therefore, we can calculate the principal amount using the formula:
Simple Interest = (Principal x Rate x Time)/100
6300 = (Principal x Rate x 2)/100
Solving for Principal, we get:
Principal = (6300 x 100)/(Rate x 2)
Step 2: Calculation of Interest:
Now, we can find the interest earned in 1 year by using the formula:
Interest = (Principal x Rate x Time)/100
Interest = (Principal x Rate x 1)/100
Step 3: Calculation of Rate:
Next, we can calculate the rate of interest by using the formula:
Rate = (100 x Interest)/(Principal x Time)
Rate = (100 x Interest)/(Principal x 1)
Step 4: Calculation of Final Amount:
Now, we can calculate the final amount after 3 years and 9 months using the formula:
Final Amount = Principal + Interest
Final Amount = Principal + (Principal x Rate x 3.75)/100
Step 5: Calculation of Principal:
Using the above formula, we can find the value of Principal, which is common in both equations.
7875 = (Principal x Rate x 3)/100 + (Principal x Rate x 3.75)/100
Solving for Principal, we get:
Principal = 4500
Step 6: Calculation of Rate:
Using the value of Principal in Step 1, we can now calculate the rate of interest:
6300 = (4500 x Rate x 2)/100
Rate = 7%
Therefore, the interest rate is 7%.
A certain sum of money amounts to 6300 in 2 years and 7875 in 3 years ...
4500??
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