What sum of money will produce rs 6912 amount in 3 years at 20% p.a compound interest?
Answers
Answer:
4000
Explanation:
Let P be the principal amount, A the accumulated amount, n the period of investment and I the interest rate.
The formula connecting the them is given as :
A = P(1 + i)ⁿ
In this question :
A = 6912
n = 3
i = 20%
Doing the substitution we have :
6912 = P(1.20)³
P = 6912/1.20³
P = 4000
The amount that will yield 6912 at a rate of interest 20% in 3 years compounded annually will be :
= 4000
Answer:
Rs.4000.
Explanation:
Given details:
Final Amount is Rs.6912
Rate of interest is 20% per annum, compounding annually.
Term of deposit is 3 years.
Required formula:
A = P(1 + r/100)^n
A is Final amount = 6912
P is Principal amount
r is rate of interest = 20
n is no. of years of deposit = 3
Solution:
6912 = P ( 1 + 20/100)^3
6912 = P (1 + 0.2)^3
6912 = P (1.2)^3
P = 6912 / 1.728
P = 4000
Answer:
So, the sum of money that will produce Rs.6912 in 3 years at 20% p.a of compound interest is Rs.4000.