What sum of money (in ₹) at compound interest | vedclass

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Question

(C) Let the principal be $P$ and the rate of interest be $R \%$.According to the formula for compound interest,the amount $A$ after $n$ years is given

Vedclass · Accepted Answer

$625$

Vedclass · Answer

(C) Let the principal be $P$ and the rate of interest be $R \%$.According to the formula for compound interest,the amount $A$ after $n$ years is given by $A = P(1 + R/100)^n$.For the first year $(n=1)$: $650 = P(1 + R/100) \quad ... (1)$For the second year $(n=2)$: $676 = P(1 + R/100)^2 \quad ... (2)$Dividing equation $(2)$ by equation $(1)$:$\frac{676}{650} = \frac{P(1 + R/100)^2}{P(1 + R/100)}$$1.04 = 1 + R/100$$R/100 = 0.04 \Rightarrow R = 4 \%$Substituting $R=4$ in equation $(1)$:$650 = P(1 + 4/100)$$650 = P(104/100)$$P = \frac{650 	imes 100}{104} = \frac{65000}{104} = ₹ 625$.

What sum of money (in ₹) at compound interest will amount to ₹ $650$ at the end of the first year and ₹ $676$ at the end of the second year?

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