Question

A certain sum of money amounts to Rs. 5,184 in 2 years and Rs. 5,832 in 3 years. Find the principal​

Answer 1

Given details are,

Rate = 5 % per annum

Compound Interest (CI) = Rs 164

Time (t) = 2 years

By using the formula,

Let P be ‘x’

CI = A – P

164 = P (1 + R/100) n – P

= P [(1 + R/100)n – 1]

= x [(1 + 5/100)2 – 1]

= x [(105/100)2 – 1]

164 = x ((1.05)2 – 1)

x = 164 / ((1.05)2 – 1)

= 164/0.1025

= Rs 1600

∴ The required sum is Rs 1600