Mathematics
A man invests ₹3072 for two years at compound interest. After one year the money amounts to ₹3264. Find the rate of interest and the amount due at the end of 2nd year.
Compound Interest
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Answer
Let the rate of interest be r% per annum.
Given, ₹3072 amounts to ₹3264 in one year.
∴ Compound interest = Final amount - Principal = ₹3264 - ₹3072 = ₹192.
Principal for second year = ₹3264.
C.I.= = ₹204.
Amount after second year = ₹3264 + ₹204 = ₹3468.
Hence, the rate of interest = 6.25% and the amount after second year = ₹3468.
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