Question

what sum of money should be invested for 5 years at 8% per annum to on the same interest as 3600 at 10% per annum for 4 years

Answer 1

Assumed simple interest:

Find the amount earned at 10% for 4 years

Interest = PRT

Interest = 3600 (0.1)(4)

Interest = Rs 1440

Find the amount to be invested at 8% for 5 years:

Interest = PRT

1440 = P(0.08)(5)

1440 = 0.4P

P = 1440 ÷ 0.4 = RS 3600

Answer: The amount is still Rs 3600