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

Question

asked Dec 6, 2022 48.9k views

1 Answer

Anthony Martin · Answer 1 · 2022-12-11T12:40:41+0000

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.