Question

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

Answer 1

Given:

Amount = Rs. 34476

Rate of compound interest = 4%

Time = $2\dfrac{1}{2}=2.5$ years

To find:

The principal value.

Solution:

Formula for amount is

$A=P\left(1+\dfrac{r}{100}\right)^t$

Where, P is principal value, r is rate of interest and t is time in years.

Putting the given values, we  get

$34476=P\left(1+\dfrac{4}{100}\right)^{2.5}$

$34476=P\left(1+0.04\right)^{2.5}$

$34476=P\left(1.04\right)^{2.5}$

$\dfrac{34476}{\left(1.04\right)^{2.5}}=P$

Now,

$P=31256.0090$

$P\approx 31256$

Therefore, the value of sum or principal value is Rs.31256.