Question

Arjun wants to invest a sum of money which will amount to rs2000 three years hence, when his son goes to collage . Find out the sum he has invested now if the rate of interest is (a)4% p.a. simple (b)4%p.a. compounded annualy

Answer 1

Answer:

A= 1785.71

B=1777.78

Step-by-step explanation:

A) Simple Interest

Amount = Principle + Interest

2000= P+I

I=2000-P

SI=PxNxR/100

2000-P= P×3×4/100

2000-P= P×3/25

2000-P=3P/25

2000=3P/25+P

2000=3P+25P/25

2000×25=28P

50000=28P

P=50000/28

P=1785.71

B) Compound Interest

Amount=P(1+R/100)^n

2000=P (1+4/100)^3

2000=P(104/100)^3

2000=P(1.04)^3

2000=P(1.125)

2000/1.125=P

1777.78= P