Question

What sum will amount to 700 at 5% per annum in 4 years if interest is
compounded annually?​

Answer 1

Answer:

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

700 = P(1+5/100)⁴

700 = P(21/20)⁴

P = 700*20*20*20*20/21*21*21*21 = 575.89 (Ans)

(Mark as brainlist)

Answer 2

AnswEr :

• Amount = Rs. 700
• Rate = 5% p.a. Compounded Yearly
• Time = 4 Years
• Principal = ?

$\Longrightarrow \sf{Amount = P \times \bigg(1 + \dfrac{r}{100} \bigg)^{t} }$

$\Longrightarrow \sf{700 = P \times \bigg(1 + \cancel\dfrac{5}{100} \bigg)^{4} }$

$\Longrightarrow \sf{700 = P \times \bigg(1 + \dfrac{1}{20} \bigg)^{4} }$

$\Longrightarrow \sf{700 = P \times \bigg(\dfrac{21}{20} \bigg)^{4} }$

$\Longrightarrow \sf{700 = P \times \dfrac{21}{20} \times\dfrac{21}{20} \times \dfrac{21}{20} \times\dfrac{21}{20} }$

$\Longrightarrow \sf{ \cancel{700} = P \times \dfrac{ \cancel{194481}}{160000}}$

$\Longrightarrow \sf{100 = P \times \dfrac{27783}{160000}}$

$\Longrightarrow \sf{100 \times\dfrac{160000}{27783} = P }$

$\Longrightarrow \sf{100 \times5.7589 = P }$

$\Longrightarrow \large \boxed{\sf{P = Rs. \: 575.89 }}$

⠀

∴ Hence, Principal will be Rs. 575.89