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The compound interest on a sum for two years is Rs. 1,575 and the corresponding simple interest is Rs. 1,500. Find the compound interest on the same sum at the same rate of interest at the end of third year.?
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The compound interest on a sum for two years is Rs. 1,575 and the corr...
Given:
Compound interest for 2 years = Rs. 1,575
Simple interest for 2 years = Rs. 1,500

To find:
Compound interest for 3 years

Solution:
Let the principal be ‘P’ and the rate of interest be ‘R’.

We know that,
Compound interest for 2 years = P[(1 + R/100)^2 - 1]
Simple interest for 2 years = (P * R * 2)/100

Given,
P[(1 + R/100)^2 - 1] = 1575
(P * R * 2)/100 = 1500

From the second equation, we can find that PR = 75000.

Substituting PR = 75000 in the first equation, we get
P[(1 + R/100)^2 - 1] = 1575
P[(100 + R)^2 - 10000]/10000 = 1575/75000
(100 + R)^2 - 10000 = 1575 * 10/3
(100 + R)^2 = 13583.33
100 + R = √13583.33
R = √13583.33 - 100
R = 10.5%

Compound interest for 3 years = P[(1 + R/100)^3 - 1]

Substituting P and R, we get
Compound interest for 3 years = P[(1 + 10.5/100)^3 - 1]
Compound interest for 3 years = P[1.331 - 1]
Compound interest for 3 years = P * 0.331
Compound interest for 3 years = 75000 * 0.331
Compound interest for 3 years = Rs. 24,825

Therefore, the compound interest on the same sum at the same rate of interest at the end of the third year is Rs. 24,825.
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The compound interest on a sum for two years is Rs. 1,575 and the corresponding simple interest is Rs. 1,500. Find the compound interest on the same sum at the same rate of interest at the end of third year.?
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The compound interest on a sum for two years is Rs. 1,575 and the corresponding simple interest is Rs. 1,500. Find the compound interest on the same sum at the same rate of interest at the end of third year.? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The compound interest on a sum for two years is Rs. 1,575 and the corresponding simple interest is Rs. 1,500. Find the compound interest on the same sum at the same rate of interest at the end of third year.? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The compound interest on a sum for two years is Rs. 1,575 and the corresponding simple interest is Rs. 1,500. Find the compound interest on the same sum at the same rate of interest at the end of third year.?.
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