Question

The ci accured on a amount at the ebd of two years rate 15 percent per annum is 2915.4.what is the amount

Answer 1

The compound interest accumulation formulae is :

P(1 + i)ⁿ = Accumulated amount

P = principle or the deposited amount

n = The time in years

i = interest rate

Calculations

P = x

That is we let the principle amount be x

Accumulated amount = principle + interest earned

This equals to :

x + 2915.40

x + 2915.40 = x(1.15)²

x + 2915.40 = 1.3225x

2915.40 = 1.3225x - x

2915.40 = 0.3225x

x = 2915.40/0.3225

x = 9040

Amount = 9040 + 2915.40 = 11955.40

Rs 11955.40