Question
If after two years a sum becomes ₹ 4000 and after four
years it becomes ₹6 000 at the same rate of compound interest (compounded annually), then what is the sum?Solution
For compound interest, A = P (1 + r/100)t According to the question ⇒ 4000 = P(1 + r/100)2 ---- (1) ⇒ 6000 = P (1 + r/100)4 ---- (2) From (2)/(1), ⇒ 3/2 = (1 + r/100)2 From (1) ⇒ 4000 = P × 3/2 ⇒ P = 8000/3 = Rs. 2666.66 ∴ The sum is Rs. 2666.66
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