Question

what principle will amount to ₹9744 in 2 years if the rate of interest for successive year is 16% and 20%
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Answer 1

Given:

(i) Amount value = Rs 9744

(ii) Successive rate of interests for 2 years is 16% and 20%

To find:

(i) The Principal value

Solution:

Let the Principal vale be Rs P.

For the 1st year, Rate (R) = 16% p.a.

SI = PRT/100

= (P*16*1)/100

= 16P/100

Amount after 1st year = Rs (P + 16P/100)

= Rs (116P/100)

This is the principal value for the second year.

Rate (R) = 20% p.a.

So, SI = (116P*20*1)/(100*100)

= Rs (2320P/10000)

Total amount = Rs (116P/100 + 2320P/10000)

= Rs (13920P/10000)

This is equal to Rs 9744.

So, (13920P/10000) = 9744

⇒ P = (97440000/13920)

⇒ P = 7000

The Principal value is Rs 7000.