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

Question

asked Mar 25, 2022 131k views

1 Answer

Modesto · Answer 1 · 2022-04-01T16:09:49+0000

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.