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The compound amount of a certain sum of money is 2 years and 3 years become ps. 8820 and rs. 9261 respectively. Find the sum and rate of interest?

A. $7800 and 4%
B. $9000 and 6%
C. $8000 and 5%
D. $7000 and 7%

User Imanuel
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1 Answer

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Final answer:

To find the sum and rate of interest, use the formula for compound interest and solve the given equations simultaneously.

Step-by-step explanation:

To find the sum and rate of interest, we can use the formula for compound interest:

Compound Amount = Principal x (1 + Rate/100)^Time

Let's denote the sum of money as S and the rate of interest as R.

From the given information, we can set up two equations:

8820 = S x (1 + R/100)²

9261 = S x (1 + R/100)³

Solving these two equations simultaneously will give us the values of S and R.

By simplifying the equations and solving, we find that the sum of money is $8000 and the rate of interest is 5%.

User Adithya Shetty
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