If a certain principal amounts to Rupees 55000 at 15% per annum over 4 years ,how much will it amount in 6 years
Please fast.
Answers
Required amount = Rs. 72737.50
Step-by-step explanation:
Using the formula
A = P (1 + r/100)ᵗ
where A amounted on principal P compounded at r% p.a. for t years.
Here A = Rs. 55000,
r = 15% p.a.
t = 4 years
We get
55000 = P (1 + 15/100)⁴
or, P (115/100)⁴ = 55000
or, P (23/20)⁴ = 55000
or, P = 55000 × (20/23)⁴
Principal = Rs. 55000 × (20/23)⁴
[ Using P = Rs. 55000 × (20/23)⁴ for t = 6 years at r = 15% p.a., we find A now. ]
A = 55000 × (20/23)⁴ × (1 + 15/100)⁶
= 55000 × (20/23)⁴ × (115/100)⁶
= 55000 × (20/23)⁴ × (23/20)⁶
= 55000 × (23/20)²
= 55000 × 529/400
= 72737.50
∴ the principal will amount to Rs. 72737.50 in 6 years.
Note: You can also use the formula for simple interest I = Ptr/100 and find the required amount.