Question

What sum of money will amount to 7840 in 2 years at 12% per annum, compounded annually?

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Answer 1

Answer:

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

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

⇒ 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

Given :-

➙ Amount (A) = ₹7840

➙ Rate of Interest (R) = 12% per annum

➙ Time period (n) = 2 years

To find :-

➙ Principal (P)

Solution :-

➙ A = (P × 1 + R ÷ 100)ⁿ

➙ 7840 = P ( 1 + ¹²⁄₁₀₀ )²

➙ P × ²⁸⁄₂₅ × ²⁸⁄₂₅ = 7840

➙ P = 7840 × ²⁵⁄₂₈ × ²⁵⁄₂₈

➙ P = 6250

The required sum is :-  ₹6250