Question

if the compound interest earned on a certain sum at 18 % per annum for 2 years interest bing compound it annually is 13734 what is the sum
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Answer 1

Sum = 35000

Step-by-step explanation:

Given:

• Compound Interest is Rs 13734.
• Time is 2 years.
• Rate is 18% per annum.

To Find:

• What is the principal ?

Solution: Let the principal be Rs P. Here we have

• P = Rs P
• C.I = Rs 13734
• T or n = 2 years
• R = 18%

As we know that

Amount = Principal × (1 + Rate/100)ⁿ

$\implies{\rm }$ A = P × (1 + 18/100)²

$\implies{\rm }$ A = P × (100 + 18/100)²

$\implies{\rm }$ A = P × (118/100)²

$\implies{\rm }$ A = 13924P/10000

Now using

Amount = Principal + C.I

➮ 13924P/10000 = P + 13734

➮ 13924P/10000 – P = 13734

➮ 13924P – 10000P/10000 = 13734

➮ 3924P/10000 = 13734

➮ P = 13734 × 10000/3924

➮ P = 137340000/3924

➮ P = 35000

Hence the principal is Rs 35000.

Answer 2

⚡Given :-

• Compound Interest = ₹13734.

• Time = 2 years.

• Rate per Annum = 18%

⚡To Find :-

• Principal.

⚡Solution :-

Let the Principal be P.

We know that,

Amount = Principal × (1 + Rate/100)ⁿ

Put the values.

➝ A = P × (1 + 18/100)²

➝ A = P × (100 + 18/100)²

➝ A = P × (118/100)²

➝ A = 13924P/10000

Now, We know that,

Amount = Principal + C.I.

➝ P + 13734 = 13924P/10000

➝ 13924P/10000 – P = 13734

➝ 13924P – 10000P/10000 = 13734

➝ 3924P/10000 = 13734

➝ P = 13734 × 10000/3924

➝ P = 137340000/3924

➝ P = 35000.

✔ Hence, The Principal = ₹ 35000.✔