Question

What sum of money will amount to 7840 in 2 years at 12% p.a. compounded annually?

Answer 1

Answer:

The sum is of Rs. 6250.

Step-by-step explanation:

Given :

Amount = Rs. 7840

Time = 2 years

Rate = 12%

To find :

The Principal

Solution :

Let the Principal be P

$\bigstar \: {\boxed{\sf{A= P\left( 1 + \frac{R}{100}\right)^{N}}}}$

⇒ 7840 = P × (1 + 12/100)²

⇒ 7840 = P × (112/100)²

⇒ 7840 = P × (28/25)²

⇒ 7840 = P × 784/625

⇒ 7840 × 626 = 784P

⇒ 4900000 = 784P

⇒ P = 4900000/784

⇒ P = 6250

Principal = Rs. 6250

Therefore, the sum is of Rs. 6250.

Answer 2

Solution :-

Amount = Rs.7840

Rate = 12%

Time = 2 years .

Principal = ?

we know That,

A = P ( 1 + R/100)^T

Putting Values we get,

→ 7840 = P[ 1 + (12/100) ]²

→ 7840 = P[ 1 + (3/25) ]²

→ 7840 = P(28/25)²

→ P = (7840*625)/784

→ P = Rs.6250 (Ans).

Hence, The Sum of Money was Rs.6250.