Business Studies, asked by Mannupansotra7196, 1 year ago

The sum of money that yields a compound interest on 420 rs during the second year at 5% per annum is

Answers

Answered by shubhamjoshi033
17

The total sum of money that yields 420 rs in 2nd year at 5% rate is Rs 8000.

Explanation:

Let P be the net principal deposited,

For compound interest we know that,

A = P[ 1 + R/100]^T

After first year the net amount generated is,

A = P[ 1 + R/100]¹

= P(1  + 5/100)

= 1.05P

Considering this as the principal for 2nd year,

Net amount generated after 2nd year

= 1.05P(1+  5/100)

= 1.1025 P

Hence interest generated in the 2nd year only

= 1.1025P - 1.05 P

= 0.0525 P

Given this interest is equal to rs 420.

=> 0.0525 P = 420

=> P = 420/0.0525

=> P = 8000 rs

Hence the sum of money that will give 420 rs in 2nd year at 5% rate is Rs 8000.

Answered by bhatiamona
8

Answer is  Rs. 8000

Let P= Principal amount,  

Then, compound interest,

A = P [ 1 + R/100]T

After first year the net amount generated is,

A = P[ 1 + R/100]¹

= P(1  + 5/100)

= 1.05P

Principal for 2nd year=1.05P

Net amount generated after 2nd year

= 1.05P (1+ 5/100)

= 1.1025 P

Hence interest generated in the 2nd year only  

= 1.1025P - 1.05 P

= 0.0525 P

Given this interest is equal to Rs. 420.

0.0525 P = 420

P = 420/0.0525

P = Rs. 8000  

Hence the sum of money that will give Rs. 420 in 2nd year at 5% rate is Rs. 8000.


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