Question

Find the principle that will give amount 2.5 years at 10% per annum is 6352.50

Answer 1

let P = X
2.5 years = 2 1/2 years
CA = P ( 1 + r/100 ) { 1 + (a/b×r)/100 }
6352.50 = X ( 1 + 10/100 ) { 1 + ( 1/2×10)/100 }
--- { 1 + (1/2×10)/100 } = ( 1 + 5/10 ) = ( 1 + 1/20 )
6352.50 = X ( 1 + 1/10 ) ( 1 + 1/20 )
6352.50 = X ( 11/10 ) ( 21/20 )
6352.50 = X ( 231/200 )
6352.50 ÷ 231/200 = X
6352.50 × 200/231 = X
27.5 × 200 = X
5500 = X ans..