Question

Find the Sum and Also the Amount Due at the End of 3 Years
The S.I. on a certain sum of money at 10 percent per annum is Rs. 6000 in 2 years. Find the sum and also the amount due at the end of 3 years and at the same rate of interest compounded yearly.

Answer 1

SI = pnr/100

P is unknown, while SI = 6000.

Thus, 6000 = 2*P*10/100 = 20P/100

Or P = 6000*100/20 = 12000

Thus, principal = 12000.

At the same rate of interest, 12000 compounded annually amounts to

T = P(1+r/100)^n

   = 12000 * (1+10/100)^3 = 12000 * 1.1^3 = 12000 * 1.331 = Rs. 15972

Therefore, the amount due at the end of 3 years is Rs. 15,972.