Question

The compound interest on a sum of money in 2 yes and 4 yrs are 5460 and 12060.6 then find principle​

Answer 1

2471.81

Explanation:

Let I be the interest, r the annual rate and P the principal. Then:

I = P(r)^2 = 5460

I = P(r)^4 = 12060.6

so r^2 = P(r)^4 / P(r)^2 = 12060.6/5460

r^2 = 2.2089

r = 1.486

So P(r)^2 = P* 2.2089 = 5460

P = 5460 / 2.2089 = 2471.81.