Question

A sum of money invested at 8% per annum amounts to Rs.12122 in 2 years. What will it amount to in 2 years 8 months at 9% per annum ?

Answer 1

We know that A = P(1+rt/100)

                     12122 = P(1+16/100)

                     P = 10450.

After 2 years 8 months, it will be 10450 * (1 + 8/3 * 9/100)

                                                    = 10450 * 124/100

                                                    = 12958