Question

Rohit decides to invest a certain amount of
money in savings account of a bank that pays
20% compound interest per annum for a
period of two years. What is the sum of money
that Rohit should invest so that he receives
Rs. 200 at the end of first year, and Rs. 400
at the end of second year?​

Answer 1

Answer:

Let, the amount that was invested by Rohit in bank be

'C'.

1.2(1.2C – 200) = 400

⇒ 1.44C = 240 + 400

∴ C = 640/1.44

4000/9 Rs.

Step-by-step explanation:

Answer 2

Complete question:

Rohit decides to invest a certain amount of money in savings account of a bank that pays 20% compound interest per annum for a period of two years. What is the sum of money that Rohit should invest so that he receives Rs. 400 at the end of second year?​

Answer:

The sum of money he  should invest so that he receives Rs. 400 at the end of second year = Rs. 277.78

Step-by-step explanation:

Given,

The percent of compound interest = 20%

Amount  at the end of second year = Rs. 400

To find,

The sum of money he  should invest

Solution:

Recall the formula

The Amount with compound interest,

A = P$(1+\frac{r}{100})^n$ , where P is the principal, r is the rate of interest and n is the time period

Substituting the value of A = 400 and n  = 2 years and r = 20%

Required to find the value of P

400 = P$(1+\frac{20}{100})^2$

= P$(1+\frac{1}{5})^2$

= P$(\frac{6}{5} )^2$

= P ×$\frac{36}{25}$

P = 400 ×$\frac{25}{36}$

= 277.78

The sum of money he  should invest so that he receives Rs. 400 at the end of second year = Rs. 277.78

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