According to the yearly compound interest, the compound interest of a sum for 1 year and 2 years are respectively Rs. 450 and Rs. 945, find the rate of interest and the sum.

Question

Accepted Answer

Let principal , rate . Year 1: ...(i). Using the identity : , so , giving , so . From (i): . Note: Q14(b) uses the same figures as Q11(c), so the method and result are identical to that part; the answer , sum Rs. 15,000 reproduces the working correctly. The textbook's printed answer key shows "Rs.1,500" for this part, which looks like a missing digit (a typo for Rs. 15,000), since it must match Q11(c)'s figures exactly.