Question

The principal amount which yields a compound interest or rs. 208 in the second year at 4% is

Answer 1

Answer:

Approximate answer will be rs. 2549

Explanation:

Answer 2

Concept Introduction:-

The interest that results on both the original and subsequent principal and the cumulative interest from a loan or may be deposit prior periods is known as compound interest.

Given Information:-

We have been given that the principal amount which yields a compound interest or rs. $208$ in the second year at $4\%$

To Find:-

We have to find that the principal amount which yields a compound interest or rs. $208$ in the second year at $4\%$ is

Solution:-

According to the problem

Let the principal be $R S . x$.

Amount after the first year $=\frac{x \times 104}{100}$

and amount after second year $=\frac{x \times 104}{100} \times \frac{4}{100}$

According to the question,

$=\frac{x \times 104 \times 4}{100 \times 100}=208\\x=R S .5000$

Final Answer:-

The principal amount which yields a compound interest or rs. $208$ in the second year at $4\%$ is $Rs. 5000$.

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