Question
When the interest accrued on a certain principal amount
over four years is 4/9 times the interest earned on the same principal amount after another four years, and the annual interest rate is denoted as r%, what is the value of 'r'?Solution
ATQ, Let the amount be Rs. ‘100X’. So, [100X × 4 × r/100 ]= [(4/9) × (100X + 100X × 4 × r/100) Or, 4Xr = (4/9) × (100X + 4Xr) Or, 4r = (4/9) × (100 + 4r) Or, 36r = 400 + 16r Or, 20r = 400 Or, r = 20
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