Question

Abhay lent certain sum to his friend for 2 years at 4% per annum compounded annually he received rupees 3380 is the amount after 2 years find the sum heel and also find the compound interest earned​

Answer 1

Given:-

• Rate% = 4%

• Time = 2 years compounded annually

• Amount = ₹3380

To Find:-

• Money that Abhay lent from his friend ( Principal ).

• Compound Interest Abhay have to give to his friend.

Solution:-

Here, Amount is given

⇒ A = $P [1 + \dfrac{r}{100}]^{t}$

⇒ ₹3380 = $P [1 + \dfrac{4}{100}]^{2}$

⇒ ₹3380 = $P[\dfrac{25 + 1}{25}]^{2}$

⇒ ₹3380 = $P[\dfrac{26}{25}]^{2}$

⇒ ₹3380 = $\dfrac{625}{676}P$

⇒ P = ₹$\dfrac{3380 \times 625}{676}$

⇒ P = ₹3125

Hence, Principal = ₹3,125

And, C.I = Amount - Principal

             ⇒ ₹3,380 - ₹3,125

             ⇒ ₹255

∴ Compound Interest is ₹255

Some Important Terms:-

• C.I = Amount - Principal

• Amount = $P[ 1 + \dfrac{r}{100}]^{t}$ compounded yearly

• Principal = $\dfrac{A}{(1 + \dfrac{r}{100})^{t}}$

• Amount = $P[1 + \dfrac{r}{200}]^{2t}$       Compounded half-yearly

• Amount = $P[1 + \dfrac{r}{400}]^{4t}$ Compounded Quarterly