Question

A sum is invested at compound interest payable annually. the inserest in two successive years was 500 and 540

Answer 1

For 1st yrs SI =CI
SO S.I. on Rs. 500 for 1 year =
540 - 500= Rs. 40
Now rate of interest =si =PTR/100
R=I/500*100=40/500*100= 8%

SI =PTR/100
500=Px1x8/100
P=500x100/8x1= Rs. 6250
P=6250

Answer 2

Answer:

The sum is Rs.6250which is invested at compound interest annually.

Step-by-step explanation:

Given:

Interest for the first year =Rs. 500

Interest for the second year = Rs. 540

Difference = Rs.540 - 500= Rs.40

Here Rs.40 is the interest on Rs. 500 for 1 yr.

Rate = (S.I ×100 )/ (P× t)

       = (40 ×100)/ ( 500×1 )

       = 8 % p.a

We know that

Sum = (S.I ×100) / (R×t)

Substituting the values

    = (500×100) /( 8 ×1)

     = 50000/8= Rs. 6250