Question

If Rs.1035 earned as interest in the second year of an investment, at 15% pa compounded yearly, find the sum and interest earned in the first year.

Answer 1

Answer:

Sum at the end of first year = Rs 6900

Interest for the first year =  Rs 900

Step-by-step explanation:

Interest in the second year = Rs 1035

Interest rate = 15% p.a.

Find the amount with interest at the end of first year:

15% = Rs 1035

1% = 1035 ÷ 15 = Rs 69

1005 = 69 x 100 = Rs 6900

Find the principal:

Interest = 15%

Principal with interest = 100 + 15 = 115%

115% = Rs 6900

1% = ÷ 16900 15 = Rs 60

100% - 60 x 100 = Rs 6000

Find the interest:

Interest = 6900 - 6000 = Rs 900

Answer: The sum at the end of the first year is Rs 6900 and the interest is Rs 900