Question
A certain amount was deposited at compound interest of x%
per annum, compounded annually. It grows to Rs. 6400 in 2 years and Rs. 9216 in 3 years. Determine the value of ‘x’.Solution
ATQ,
Let the principal amount = Rs. A
We have, A × {1 + (x/100)}² = 6400
And, A × {1 + (x/100)}³ = 9216
So, 9216 ÷ 6400 = [A × {1 + (x/100)}³] ÷ [A × {1 + (x/100)}²]
Or, 1.44 = {1 + (x/100)} = (100 + x)/100
Or, 100 + x = 144
So, x = 44
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