Question

What sum will amount to Rs. 6593.40 in 2 years at compound interest, if the rates are 10%

and 11% for two consecutive years?​

Answer 1

Answer:

The sum is Rs 5400

Step-by-step explanation:

Given : A = Rs 6593.40, T = 2 yrs , R₁ = 10% , R₂ = 11%

To Find : P

$A=P(1 + \frac{r}{100} )( 1 + \frac{R}{100} )$

$6593.40 = P (1 + \frac{10}{100} )(1 + \frac{11}{100} )$

$\frac{6593.40}{P} = (1 + \frac{10}{100} )(1+\frac{11}{100} )$

$\frac{6593.40}{P} = (\frac{100+10}{100} )(\frac{100+11}{100} )$

$\frac{6593.40}{P}= (\frac{110}{100} )(\frac{111}{100})$

$\frac{6593.40}{P}= \frac{11}{10} * \frac{111}{100}$

$\frac{6593.40}{P} = \frac{1221}{1000}$

$P = \frac{6593.40*1000}{1221}$

$P = \frac{6593400}{1221}$

$P = 5400$