Question

What sum of money amounts to rupees 8700 in 3 years at the rate of 24 % per annum​

Answer 1

Given:

Amount = 8700

Time = 3 years

Rate of interest = 24% per annum

To find:

The principal values.

Solution:

Formula for amount:

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

Where, A is amount, P is principal, r is the rate of interest and t is the number of years.

Putting
`A=8700,r=24,t=3`, we get

`8700=P\left(1+(24)/(100)\right)^(3)`

`8700=P\left(1+0.24\right)^(3)`

`8700=P\left(1.24\right)^(3)`

`8700=1.906624P`

Divide both sides by 1.906624.

`(8700)/(1.906624)=P`

`4563.0391729=P`

`P\approx 4563.04`

Therefore, the principal value is about 4563.04.