Answer:
Step-by-step explanation:
Given:
- Rate of interest is r
- Time = 2 years
- Sum = P
- P(c) = 738
- P(s) = 720
Use formulas:
- P(c) = P*(1 + r)²
- P(s) = P*(1 + r*2)
Substitute the known values:
- P(1 + r)² = 738 ⇒ P = 738/(1 + r)²
- P(1 + 2r) = 720 ⇒ P = 720/(1 + 2r)
Eliminate P and solve for r:
- 738/(1 + r)² = 720/(1 + 2r)
- 738(1 + 2r) = 720(1 + r)²
Solving the quadratic equation we get:
Now find P:
- P = 720/(1 + 0.185*2) ≈ 525.55
