Question

A sum amount
to rupees 34476 in two and a half years at 4% CI. the sum is ​

Answer 1

Given:

Amount = Rs. 34476

Rate of compound interest = 4%

Time =
`2(1)/(2)=2.5` years

To find:

The principal value.

Solution:

Formula for amount is

`A=P\left(1+(r)/(100)\right)^t`

Where, P is principal value, r is rate of interest and t is time in years.

Putting the given values, we get

`34476=P\left(1+(4)/(100)\right)^(2.5)`

`34476=P\left(1+0.04\right)^(2.5)`

`34476=P\left(1.04\right)^(2.5)`

`(34476)/(\left(1.04\right)^(2.5))=P`

Now,

`P=31256.0090`

`P\approx 31256`

Therefore, the value of sum or principal value is Rs.31256.