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A certain sum amounts to Rs. 7350 in 2 years and to Rs. 8575 in 3 years when compounded annually. The sum and rate of interest is?

Solution

✅ Correct Option: 1

The third year interest is 8575−7350=12258575 - 7350 = 1225 on 73507350, so r=12257350×100=16.66%r = \frac{1225}{7350} \times 100 = 16.66\%. Then P(76)2=7350P\left(\frac{7}{6}\right)^2 = 7350, giving P=7350×3649=5400P = 7350 \times \frac{36}{49} = 5400.

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