A certain sum amounts to rs 7000 in 2 yrs and 8000 in 3 yrs. Find the sum
Answers
Answered by
11
Solution:
First we need to find out ROI for 1 year.
We can do this by using Simple Interest formula, SI = PRN/100
Since SI on ₹7000 for 1 year
= 8000 - 7000 = ₹1000
Therefore, 1000 = (7000×R×1)/100
or R = 100/7 %
Since, the sum is the Principal amount.
& the interest is compounded yearly on the Principal for a period of 3 years, then the amount is ₹8000.
Therefore, 8000 = P × {1 + (100/7)/100}^3
or 8000 = P × (8/7)^3
or P = ₹5359.375
Hence the sum is ₹5359.375
First we need to find out ROI for 1 year.
We can do this by using Simple Interest formula, SI = PRN/100
Since SI on ₹7000 for 1 year
= 8000 - 7000 = ₹1000
Therefore, 1000 = (7000×R×1)/100
or R = 100/7 %
Since, the sum is the Principal amount.
& the interest is compounded yearly on the Principal for a period of 3 years, then the amount is ₹8000.
Therefore, 8000 = P × {1 + (100/7)/100}^3
or 8000 = P × (8/7)^3
or P = ₹5359.375
Hence the sum is ₹5359.375
Similar questions