Asked by Chirag

a certain sum amounts to 26460 in 2 years and 27783 in 3 years when compounded annually. calculate the rate of interest and the sum borrowed

Answers

Answered by mathhelper
p(1+i)^2 = 26460
p(1+i)^3 = 27783

divide the 2nd by the first
1+i = 1.05
i = .05

sub into p(1.05)^2 = 26460
p = 26460/(1.05)^2 = ....
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