Question

Bhavya prepare to lend 8000 rs for 3years at rate of 10% but at the time of lending he lend less amount due to which his total gain decreases by 450 find the amount he reduced from the initial amount? Solution

Answer 1

Answer:

Rs 1359.52

Step-by-step explanation:

the initial principal amount is Rs 8000

Time=3 years

Interest rate= 10%

Assuming a compound rate of interest, the amount due at the end of the 3 years is;

$A=P*(1+\frac{rate}{100})^t\\ A=8000*(1+\frac{10}{100})^3\\ A=8000*1.1^3\\A=10648$

The gain made is;

$Gain=10648-8000\\Gain=2648$

When the gain reduces by 450 it becomes

$2648-450=2198$

therefore with the new principal Q,

$(Q+2198)=Q*(1+\frac{10}{100})^3\\ Q+2198=1.1^3*Q\\1.1^3Q-Q=2198\\1.331Q-Q=2198\\0.331Q=2198\\Q=\frac{2198}{0.331} \\Q=6640.48$

Therefore, the actual amount lent is Rs 6640.48

The amount reduced from the initial amount is

$8000-6640.48=1359.52$