Question

. At the rate of 8% per annum simple interest after 5 years the amount due to rupees 28000 calculate its present value.​

Answer 1

Answer:

P=2000,Rate=10%

andT=2years

Then

CompoundInterest=p(1+

100

R

)

=2000(1+

100

10

)

2

=2000(

10

11

)

2

=2000×

100

121

=2420

Compound Interest 2420 Rupees

Answer 2

The present amount or Principal amount is 20000 Rs

Given:

Rate of Simple interest R = 8%

The time period T = 5 years

The total amount at end of 5 years = 28000

To find:

The present amount or Principal amount

Solution:

Let P be the present value

The total amount after 5 years = P + interest

As we know Simple Interest I = PTR/100

⇒ The interest for P at R = 8% for T = 5

= P(5)(8)/100  = P(40)/100 = 0.4P

and the total amount = P+ 0.4P = 1.4P

From given data the total amount at 5 years = 28000  

⇒ 1.4P = 28000  

⇒  P = 20000 Rs.

Therefore, The present amount or Principal amount = 20000 Rs

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