Identify the given compound interests for the first and second years.

You're on a roll — Q. The Compound interest of certain for first and Second year is Rs. 20 and Rs. 23 respectively. Find the rate of interest in P.C.P.A. Step 1: Identify the given compound interests for the first and second years. Let CI_1 be the compound interest for the first year. Let CI_2 be the compound interest for the second year. We are given: CI_1 = Rs. 20 CI_2 = Rs. 23 Step 2: Understand the relationship between compound interest for consecutive years. The compound interest for the first year is calculated on the principal amount. The compound interest for the second year is calculated on the amount accumulated at the end of the first year (Principal + CI_1). The difference between CI_2 and CI_1 represents the interest earned on the interest of the first year. Step 3: Calculate the interest earned on the first year's interest. The additional interest earned in the second year compared to the first year is: Additional Interest = CI_2 - CI_1 = 23 - 20 = Rs. 3 This Rs. 3 is the interest earned on CI_1 (Rs. 20) for one year. Step 4: Use the simple interest formula to find the rate of interest. We can consider CI_1 as the principal for calculating this additional interest. Let P' = CI_1 = Rs. 20. Let I' = Additional Interest = Rs. 3. Time T = 1 year. The formula for simple interest is I = (P × R × T)/(100). Substituting the values: 3 = (20 × R × 1)/(100) Step 5: Solve for the rate of interest (R). 3 = (20R)/(100) 3 = (R)/(5) Multiply both sides by 5: R = 3 × 5 R = 15 The rate of interest is 15% per annum. The final answer is 15\% P.C.P.A.. Send me the next one 📸