for find the sum which when invested at 4 pa for 2 years will become rupees 70304 when interest is compounded annually
Answers
Answer:
7500 rs
Step-by-step explanation:
Stating the formula for the amount when a sum of money is compounded half - yearly.
A = P(1+
2×100
r
)
2n
where A is the amount, P the principal sum, r is the rate of interest
and n the time span in years
Step - 2: Finding the principal sum of money.
We know that the amount after one year = Rs. 7803 at a rate of 4%
So we can write,
7803 = P(1+
2×100
4
)
2×1
⇒7803=P(1+
50
1
)
2
⇒7803=P(
50
51
)
2
⇒P =
51×51
7803×50×50
⇒P =
2601
7803×2500
⇒P = 3 ×2500
⇒P = Rs. 7500
Thus, the sum of money will be Rs.7500.
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