Verified answer

Required Answer:-

Given:

• Total amount in 1 year = ₹2200/-
• Total amount in 4 years = ₹2800/-

To find:

• Principal amount.
• Rate of interest per annum.

Solution:

Let principal be ₹P

Let Rate of Interest be R% per annum.

So,

➡ Interest for 1 year = PR × 1/100

➡ Amount = P + PR/100 = ₹2200 ..... (i)

➡ Interest for 4 years = 4PR/100

➡ Amount = P + 4PR/100 = ₹2800 .......(ii)

Subtracting (i) from (ii), we get,

➡ 3PR/100 = 600

➡ PR = 600 × 100/3

➡ PR = 20000

Putting the value of PR in (i), we get,

➡ P + 20000/100 = 2200

➡ P + 200 = 2200

➡ P = ₹2000

➡ R = 20000/2000

➡ R = 10% per annum.

Hence,

★ Principal Amount = ₹2000

★ Rate of Interest = 10% p.a.

Answer:

• The Sum and the Rate of interest are ₹2000 and 10% p.a. respectively.