Question

What sum of money lent out at 10% per annum would produce Rs.150 in five years

Answer 1

Solution :

Let Principal = P

Rate of interest (r) = 10% ,

Time ( t ) = 5 years

Amount ( A ) = Rs 150

P[ 1 + r/100 ] = A

=> P[ 1 + 10/100 ] = 150

=> P ( 1 + 1/10 ) = 150

=> P( 11/10 ) = 150

=> P = ( 150 × 10 )/11

=> P = Rs 136.36

•••••