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Mathematics

On what sum will the compound interest for 2 years at 4% per annum be ₹5712?

Compound Interest

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Answer

Let principal = P,

C.I. = P[(1+r100)n1]P\Big[\Big(1 + \dfrac{r}{100}\Big)^n - 1\Big]

Putting values in formula we get,

5712=P[(1+4100)21]5712=P[(104100)21]5712=P[(2625)21]5712=P[6766251]5712=P[676625625]5712=P×51625P=5712×62551P=112×625P=70000.\Rightarrow 5712 = P\Big[\Big(1 + \dfrac{4}{100}\Big)^2 - 1\Big] \\[1em] \Rightarrow 5712 = P\Big[\Big(\dfrac{104}{100}\Big)^2 - 1\Big] \\[1em] \Rightarrow 5712 = P\Big[\Big(\dfrac{26}{25}\Big)^2 - 1\Big] \\[1em] \Rightarrow 5712 = P\Big[\dfrac{676}{625} - 1\Big] \\[1em] \Rightarrow 5712 = P\Big[\dfrac{676 - 625}{625}\Big] \\[1em] \Rightarrow 5712 = P \times \dfrac{51}{625} \\[1em] \Rightarrow P = \dfrac{5712 \times 625}{51} \\[1em] \Rightarrow P = 112 \times 625 \\[1em] \Rightarrow P = ₹70000.

Hence, principal = ₹70000.

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