Question

The sum of money which when given on compound interest at 20% per annum would fetch rs. 155.0625 more when the interest is payable quarterly than when it was payable annually for 1 year is:

Answer 1

Answer:

10,000

Explanation:

Given The sum of money which when given on compound interest at 20% per annum would fetch rs. 155.0625 more when the interest is payable quarterly than when it was payable annually for 1 year is:

Let the sum of money be a

When compounded annually we get

Amount = a x (1 + r/100)^n

When compounded quarterly we get

Amount = a x (1 + r / 4 x 100)^4 x n

Therefore a(1 + 20 / 400)^4 = 155.0625 + a(1 + 20/100)^1

So a(21 / 20)^4 = 155.0625 + 1.2 a

Now 1.21550625 a = 155.0625

Therefore a = 10,000

The sum of money was Rs 10,000

Answer 2

Answer:

a=10000will be the correct answer hope it helps you