Question

c) A sum of money will amount to Rs. 2704 in 2 years at 4% p.a.compound interest. Find i) the sum of the money at the beginning

Answer 1

Answer:

Rs. 2500

Step-by-step explanation:

Answer 2

Answer:

The sum of money at the beginning is Rs. 2500 and the interest generated is  Rs. 204

Step-by-step explanation:

Given:

Amount is Rs.2704

Rate of interest is 4%

Number of years is 2 years

To find: The sum of money generated at the beginning

Formula used: $A = p(1 + \frac{r}{100} )^{n}$

Solution:

Let the sum of money at the beginning  is P

Here,

Amount (A) = Rs. 2,704

Rate of interest compounded yearly is 4

r = 4

Number of years is 2

n = 2

We have to find the principal amount at the beginning

We know that

$A = p(1 + \frac{r}{100} )^{n}$

A = 2704

r = 4

n =2

Substitute the value in the formula

⇒$2704 = P(1 + \frac{4}{100} )^{2}$

⇒ $2704 = P( 1 + \frac{1}{25} )^{2}$

⇒ 2704 = P($(\frac{26}{25} )^{2}$

⇒ 2704 = P × $\frac{676}{625}$

⇒ P = 2704 × $\frac{625}{676}$

⇒  P = 2500

The principal amount at the beginning is Rs. 2500

The interest generated = Amount - Principal

                                      = Rs . 2704 - Rs. 2500

                                      = Rs . 204

Interest Generated is Rs. 204

Final answer:

The sum of money at the beginning is Rs. 2500 and the interest generated is  Rs. 204

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