Scheme A offers compound interest (compounded annually) at a certain rate of interest (p.c.p.a.). When a sum was invested in the scheme it amounted to Rs.14,112 after 2 years and Rs. 16,934.40 after 3 years. What was the sum of money invested ?
Scheme A offers compound interest (compounded annually) at a certain rate of interest (p.c.p.a.). When a sum was invested in the scheme it amounted to Rs.14,112 after 2 years and Rs. 16,934.40 after 3 years. What was the sum of money invested ?
1). Rs. 9000
2). Rs. 10,200
3). Rs. 8,800
4). Rs. 9,400
2 answers
Let the amount invested = Rs. $P$
Amount under compound interest = $A = P (1 + \frac{R}{100})^T$
=> $14112 = P (1 + \frac{R}{100})^2$ ----------------Eqn (1)
$16934.40 = P (1 + \frac{R}{100})^3$ ----------------Eqn (2)
Now, dividing equation (2) by (1), we get :
=> $\frac{16934.40}{14112} = (1 + \frac{R}{100})$
=> $1 + \frac{R}{100} = 1.2$
Putting above value in equation (1)
=> $14112 = P (1.2)^2$
=> $P = \frac{14112}{1.44}$ = Rs. $9,800$
Let the amount invested = Rs. $P$
Amount under compound interest = $A = P (1 + \frac{R}{100})^T$
=> $14112 = P (1 + \frac{R}{100})^2$ ----------------Eqn (1)
$16934.40 = P (1 + \frac{R}{100})^3$ ----------------Eqn (2)
Now, dividing equation (2) by (1), we get :
=> $\frac{16934.40}{14112} = (1 + \frac{R}{100})$
=> $1 + \frac{R}{100} = 1.2$
Putting above value in equation (1)
=> $14112 = P (1.2)^2$
=> $P = \frac{14112}{1.44}$ = Rs. $9,800$