a sum of money amounts to 2100 in a year and 2205 in two years . find the rate of interest and sum.
Year 1 2100
Year 2 = 2205
r ?
p ?
Difference 2205 2100
105
I p R T/100
105
R 5%
Part b
Let the principal for first year be x
So we'll use this formula;
I P R T/100
Whereby
Amount for first year x
For second year p
R= 5%p.a T = 1 year
So we solve for this;
I 100
100
From the equation above we'll get
/100
=2100
400 2100 400
X 40000
So the original sum of money is
40,000
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