Question

what sum will amount to₹28750 in 4 years @8% p. a. compound interest?​

Answer 1

Answer:

$p( {r} + {per annum } )$

by 100

Answer 2

Solution!!

The concept of compound interest has to be used here. The amount, rate of interest and time is given in the question. We have to find the principal.

Amount = Rs 28750

Time (n) = 4 years

Rate of interest (R) = 8%

Principal (P) = ?

Amount = P(1 + (R/100))ⁿ

28750 = P(1 + (8/100))⁴

28750 = P(108/100)⁴

28750 = P(27/25)⁴

P = 28750(25/27)⁴

P ≈ 21132.10

Hence, the principal is Rs 21132.10 approximately.