Question

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

Answer 1

Given:

Amount = 8700

Time = 3 years

Rate of interest = 24% per annum

To find:

The principal values.

Solution:

Formula for amount:

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

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

$8700=P\left(1+\dfrac{24}{100}\right)^{3}$

$8700=P\left(1+0.24\right)^{3}$

$8700=P\left(1.24\right)^{3}$

$8700=1.906624P$

Divide both sides by 1.906624.

$\dfrac{8700}{1.906624}=P$

$4563.0391729=P$

$P\approx 4563.04$

Therefore, the principal value is about 4563.04.