Question

A certain sum of money amounts to 23400 Rs in 3 years at 10 % per annum simple interest . Find the amount of the same sum in 2 years and at 10 % pa compound interest.

Answer 1

A=P(1+r/100)

A=23400(1+10/100)3

A=23400(10+1/10)3

A=23400(11/10)3

A=23400×11/10×11/10×11/10

A=234×1331/10

311454/10

31145.4

31145.4―23400

7745.4