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Start learning 50% faster. Sign in nowLet the principal be P. ∴ P + CI for 3 yrs = Rs. 8,000 ----- (i) And P + CI for 2 yrs = Rs. 6,400 ----- (ii) Subtracting (ii) from (i), we get CI for the 3rd yr = 8,000 – 6,400 = Rs. 1600 Thus, CI calculated in the 3rd yr is basically the interest on the amount generated after 2 yrs which is Rs. 6,400. ∴R = (SI×100)/(P×T) = (1600×100)/(6400×1) = 25 % p.a.
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EVIDENCE
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