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Hemant invested Rs. ‘y’ at the rate of (r+2)% per annum on simple interest and after four years Rs. 27520 was obtained as an interest.
y x (r+2)% x 4 = 27520
y x (r+2) x 4 = 2752000
y x (r+2) = 688000
y = 688000/(r+2) Eq.(i)
If Rs. (y+2500) was invested at the rate of ‘r’% per annum compounded annually and after two years Rs. 16560 was obtained as an interest.
(y+2500)[{(100+r)/100}^2 - 1] = 16560
Put Eq.(i) in the above equation.
(688000/(r+2)+2500)[{(100+r)/100}^2 - 1] = 16560
5r^3+2386r^2−54000r−662400=0
(r−30) (5r^2+2536r+22080)=0
There are three values of ‘r’. But two of them are negative and not possible.
So the value of ‘r’ = 30.
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