A certain sum is interested at compound. The interest occurred in the first two years is Rs. 272 and that in the First three years is Rs. 434. Find the rate %?
A. 33.33%
B. 25%
C. 12.5%
D. 16.67%
E. None of these
Solution(By Examveda Team)
For first two year interest =P[(1+R/100)^2-1]=272 -------------------- (1)
For first three year interest=P[(1+R/100)^3-1]=434 ------------------- (2)
On dividing Equation (1) by (2), we get
(1+R/100)^2-1/(1+R/100)^3-1=272/434
Let (1+R/100)=x ......(3)
(X^2-1)/(x^3-1)=136/217
(x+1)/(x^2+x+1)=136/217
136x^2-81x-81=0
After solving x will be 1.1248
By putting this value in eq (3) we get
R=12.48 approximately 12.50%.
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16.67