Question

What sum will amount to 2782.50 in 2 years at compound interest, if the rates are 5% and 6% for the successive years?

Answer 1

Answer:

Let the principal be x

Case 1:

Principal = x

Tine = 1 year

Rate of interest = 5% = 0.05

\begin{gathered}Amount = P(1+r)^t\\Amount =x(1+0.05)^1\end{gathered}

Amount=P(1+r)

t

Amount=x(1+0.05)

1

Amount=1.05x

Case 2:

Principal = 1.05x

Time = 1 year

Rate of interest = 6% = 0.06

\begin{gathered}Amount = P(1+r)^t\\Amount =1.05x(1+0.06)^1\end{gathered}

Amount=P(1+r)

t

Amount=1.05x(1+0.06)

1

Amount=1.113x

We are given that amount is Rs.2782.50

So, 1.113x=2782.50

x=\frac{2782.50}{1.113}x=

1.113

2782.50

x=2500

Hence The principal is RS.2500

#Learn more:

Find the compound interest for 2 * 1/ 2 years on ₹4000 at p. A if the interest is compounded yearly?

Explanation:

hope its help you