Question

Mr.Shah borrowed a certain sun of money.After 2 years, the amount to be reapid was $Rs.8,38,500$ and at the end of 3 years the amount to be reapaid was $Rs.9,32,750$.How much money had Mr.Shah borrowed and at what rate of simple interest?

Answer 1

let $x$ be the amount of money initially borrowed by Mr. Shah

principal = $x$

rate = $r$

time = $t$

we know that $amount=principal\ast (1+rate\ast time)$

at 2 years $838500=x(1+2r)-------a$

at 3 years $932750=x(1+3r)-------b$

dividing $b$ by $a$

$\frac{1+3r}{1+2r}=1.1124$

$1+3r=1.1124+2.2248r$

$r=\frac{0.1124}{0.7752}$

solving we get $r=0.14499$

and substituting for $r$ in $a$ we get $x=650,010.07767$