Question
A certain sum is deposited in a bank which gives compound intrest at certain rate. The intrest on the amount is rs.440. In the first 2 years and rs.728 in the first 3 years what is the rate of interest per annum.
Answers
Steve
x((1+r)^2-1) = 440
x((1+r)^3-1) = 728
((1+r)^3-1)/((1+r)^2-1) = 728/440
r = 1/5 = 0.2 = 20%
x((1+r)^3-1) = 728
((1+r)^3-1)/((1+r)^2-1) = 728/440
r = 1/5 = 0.2 = 20%