Anil invests some money at a fixed rate of interest, compounded annually. If the interests accrued during the

Question

Anil invests some money at a fixed rate of interest, compounded annually. If the interests accrued during the second and third year are ₹ 806.25 and ₹ 866.72, respectively, the interest accrued, in INR, during the fourth year is nearest to

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Accepted Answer

931.72. Let the principal amount be P and the interest rate be r. Then P ( 1 + r ) 2 − P ( 1 + r ) = 806.25 P\left(1+r\right)^2-P\left(1+r\right)=806.25 P ( 1 + r ) 2 − P ( 1 + r ) = 806.25 -(1) P ( 1 + r ) 3 − P ( 1 + r ) 2 = 866.72 P\left(1+r\right)^3-P\left(1+r\right)^2=866.72 P ( 1 + r ) 3 − P ( 1 + r )