Question

3. A sum of money is lent at 8% per annum
compound interest. If the interest for the
second year exceeds that for the first year
by 96, find the sum of money.​

Answer 1

Answer:

15000

Step-by-step explanation:

Let principal = x, R = 8%, Time = 1 year.

1st year interest:

 PTR/100

=> (x * 1 * 8)/100

=> 8x/100

=> 0.08x

amount at the end of 1st year = x + 0.08x = 1.08x

2nd year Interest :

PTR/100

P = 1.08x, R = 8%, Time = 1 year

=> (1.08x * 8 * 1)/100

=> 8.64/100

=> 0.0864x

amount at end second year = 1.8864x

Second year exceeds that for the first year by 96.

=> 0.0864x = 0.08x + 96

=> 0.0864x - 0.08x = 96

=> 0.0064x = 96

=> x = 96/0.0064

=> x = 15000

Hence, sum = 15000.

#Hope my answer helped you!.