Question

A sum of money becomes Rs.625 in 2019 in when Rs. 1 was given on Compound interest in 1939. What was it's in 1999?

Answer 1

Step-by-step explanation:

Given A sum of money becomes Rs.625 in 2019 in when Rs. 1 was given on Compound interest in 1939. What was it's in 1999?

• Now amount is calculated using the formula since it is compound interest.
• So A = P ( 1 + r/100)^n
•   625 = 1 ( 1 + r/100)^80 (since 2019 – 1939 = 80)
• Using log we get
• Log 625 = 80 log (1 + r/100)
• Log 625 / 80 = log(1 + r/100)
• 0.0349 = log (1 + r/100)
• Now 1 + r/100 = 10^0.0349
• So 1 + r/100 = 1.08379
• Or r/100 = 0.08379
• Or r = 8.379
• Now we need to take for n = 60 years (1999 – 1939 = 60)
• So A = P(1 + r/100)^n  
•         = 1(1 + 8.379 / 100)^60
•        = (108.379 / 100 )^60
•        = (1.08379)^60
•        = 124.9
•        = Rs 125

In 1999 it was worth Rs 125

Reference link will be

https://brainly.in/question/12456506